2) (25 points) Consider a nonrenewable resource that can be consumed either today (period 1) or tomorrow (period 2) and has a nite supply of 4 units. Assume the inverse demand for the resource in both periods is: D[I:P;=12ZQ\" i=1,2 Assume the marginal cost of extracting the resource is constant at $4 and the social discount rate is 20 percent (r = .2). a) Determine the socially efcient extraction/consumption path for the resource. b) What is the undiscounted total surplus generated from consumption of the resource in period 1? c) What is the undiscounted total surplus generated from consumption of the resource in period 2'? d) What is the smallest possible intergenerational transfer that is consistent with sustainability? Assume the rate of return on investment equals the social discount rate. e) Now resolve this problem assuming a 25 percent social discount rate and rate of return on investment. How does the optimal intergeneration transfer change