[Assume the intergalactic market operates the same as the world market we've studies in class]

Mustafar is a very hot planet that supports an economy based on industrial mining. It exports minerals and imports ice in the intergalactic market. The workers who mine the minerals (the miners) are not from this hot planet and have not adapted to the conditions.

Part 1 (10 points):Ice is very important on this hot planet. In fact, the miners on Mustafar require ice to live and will not survive if they do not consume 8 kilograms of ice per day.(a)Based on this information, draw a model representing the miner's demand curve for ice on Mustafar. In your model, be sure to consider the slope of the demand curve.(b)Using concepts that we've discussed, explain your reasoning for how you drew the slope of the demand curve and use any relevant vocabulary introduced in the unit to help explain your reasoning.(c)If the price of ice increased by 20%, do you expect the quantity demanded of ice to increase by an amount more than, less than, or equal to 20%? Explain your reasoning.

Part 2 (10 points):The minerals from Mustafar are extremely valuable in the intergalactic market and are sold at a price in the intergalactic market that is higher than the domestic price of the minerals on Mustafar. Assume Mustafar has a free-trade policy.(a)Based on the information in this problem, draw a model that represents market for minerals on Mustafar.(b)Label the world price (Pw), the quantity of minerals consumed domestically (Qd), and the quantity of minerals produced domestically.(c)Identify whether Mustafar imports or exports minerals and identify the amount of imports/exports on your model.