For each of the following scenarios, draw well-labeled graphs to illustrate the changes you expect to take place. Nextand of most importanceexplain in bullet-point fashion each step of the causeand-effect change process. In other words, (1) identify which "rule" created a shift and (2) explain how marginal analysis works together with the Law of Demand and the Law of Supply to remedy market imbalances when market conditions change (as reflected by a shift of the demand curve, the supply curve, or both). As part of your explanation, when appropriate, comment on how (a) subjective value and/or (b) opportunity cost are/is involved with the change process. (Hint for some of the questions: A price ceiling or a price floor is not interpreted the same way as a "regulation," per our supply and demand "rule book.") 1. A rare earth element known as dysprosium has unique magnetic properties that make it a mandatory input in the manufacturing of wind turbines. All mines for dysprosium have been exhausted. The last known location for this element is high-up in a mountain range in China. The resource requirements for mining this remaining source of dysprosium are expected to be significantly higher than the cost of pervious mining operations. Using the supply and demand model, explain the changes you expect to happen (a) in the market dysprosium and (b) the market for wind turbines. 2. The U.S. Environmental Protection Agency recently enacted regulations that require new, expensive procedures that must be implemented in order to generate electricity by using coal as a fuel source. Naturally, you should consider coal as a compliment in the production of coal-fired electricity. Using the supply and demand model, explain what happens (a) in the market for coalfired electricity generation and (b) the market for coal. 3. Suppose a town in an isolated area has a housing market that is in equilibrium. Next, suppose that a shale formation near the town causes a massive influx of people to drill for oil and gas in the formation. First: What do you expect to happen in the housing market? Second: What would happen if the town voted to approve a law to keep the price of housing at its original equilibrium price? 4. Suppose a country has a labor market that is in equilibrium. Next, suppose that, for whatever reason, a surge of people choose to immigrate into the country searching for economic opportunity. First: What do you expect to happen in the labor market? Second: What would happen if the country voted to approve a law to keep the price of labor at its original equilibrium price? (Helpful Hint: In a labor market, the laborers represent the supply curve and employers represent the demand curve.) 5. A storm knocks out power to a town. Portable generators offer the only option for residents to get electricity. To protect the public interest, the city government passes a law specifying that no one may sell generators above the price charged before the storm struck. First: What do you expect to happen in the market for generators? Second: What would happen if the town government passed a law fixing the price of generators at the price charged before the storm struck?