Suppose the city of College Station has a total of 30 million gallons of groundwater. The city council plans to allocate the available groundwater to competing users over the next three years, efficiently. Suppose the total groundwater demand in each period is given by P= 20-0.5q. Assume the discount rate is 10%. Upload your paper work as a picture or document.

1. Draw the total groundwater demand curve for the city of College Station. Show the total water supply.
2. The city council is considering two allocation options. Which of the following options would you recommend and why?

Option 1	Option 2
10 million gallons each in each period	15 million gallons in the first year, 10 million gallons in the second year, and 5 million gallons in the third year

2. Bonus: Suppose the third option being considered is allocating 5 million gallons in the first year, 10 million gallons in the second year, and 15 million gallons in the third year. Which of the three options should the city council pursue? Why?