Consider a water project in a region that supplies water to both industrial and agricultural use. Their demand functions for water are respectively:...

7. Consider a water project in a region that supplies water to both industrial and agricultural use. Their demand functions for water are respectively:Qind = 6 – PQag = 12 - PThe water project has a capacity limit of S = 18, and the marginal cost of water supply isconstant at 1.(a)What is the efficient price of water? What are the quantities of water allocated to agricultural and industrial use?