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-andeffect change process. In other words, (1) identify which "rule" created a shift; (2) identify whether the shift has created a shortage or a surplus; and (3) explain how marginal analysis works together with (a) the Law of Demand and (b) the Law of Supply to remedy shortage or surplus. 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).

A rare earth element known as dysprosium has unique magnetic properties that make it a mandatory input in the manufacturing of wind turbines. All existing 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