5 8 Points Consider the following two-period extraction problem (assume a zero discount rate). Supply (marginal cost of extraction) in each year: MC =MC2=5 Demand in the two different years: MB = 75-Q1 MB2=100-Q2 Total supply of the resource: Q1 + Q275 Q5.1 2 Points What quantities and prices solve the dynamic resource allocation problem, considering both time periods? Enter your answer here Q5.2 2 Points Suppose the government adds a tax of $10 for each unit of the resource produced, starting in time period 2. Solve for the new prices and quantities in each time period. Enter your answer here Q5.3 2 Points Your answer to part 2 will be an example of the green paradox. Explain, referencing the price and quantity changes in your answer above, what is meant by this. Enter your answer here Q5.4 2 Points Assuming no tax policy, what is the minimum total supply of the resource needed in order for the resource constraint to stop binding? (Hint: this is where the scarcity rent = 0.) Enter your answer here