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 cause-and-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. Rules to remember: The demand curve is a valuation curve. The supply curve is an opportunity cost curve. The words "demand" and "supply" refer to the whole curve (shifting) The phrases "quantity demanded" and "quantity supplied" refer to a point on a curve (also implying movement along a curve). 1. You produce a food product that requires milk as an input. The price of milk increases. Explain how the market for your product will change. 2. You are an analyst covering the oil and gas markets. You know from experience that natural gas and fuel oil are competing fuels; they are substitutes in certain production processes. A new technology has made it more cost effective to extract natural gas from hard-to-reach geological formations. 3. The health-care insurance industry (via its various industry associations) recently implemented a new data reporting system for private-practice physicians. Each private practice expects to engage in an additional 1,000 hours of paperwork per year. 4. Consider the market for two goods that are substitutes, such as beer and wine, and two goods that are complements, such as beer and pretzels. A tax is imposed on the production of beer but not wine or pretzels. 5. You manage a pasta-making company. Your market research has shown that consumers view spinach linguini as a "normal good" and ramen noodles as an "inferior good." Your management team expects the U.S. economy to enter a recession in the near future (implying that consumers' income, on average, will decline). Using the supply and demand model, explain, when the recession hits, what you expect to happen (1) in the market for spinach linguini and (2) the market for ramen noodles.