Suppose that a nation with known supply of a non-renewable (iron ore) resource is concerned on the allocation of the resource for current and future generation. The demand and supply of iron ore are estimated as Demand: = 8 0.4 and Supply: = 2. (a) With a properly labelled graph draw the demand curve, supply curve, and show the equilibrium price and quantity consumed based on current demand and supply. [4 marks] (b) Draw a graph for marginal net benefits (MNB). [3 marks] (c) Suppose that there is a 20 years gap between the two generations and the net benefit function is expected to be the same for both generations. The discount rate is 10 percent per annum. Total iron ore supply for both generations is limited to 160 units. Calculate the efficient allocation of resources between the two generations. [8 marks]