The demand for soy milk would not be as high as the demand for regular milk, the price would be higher resulting in a steeper demand curve. 1. According to the Australian Wool Innovation, severe drought conditions in Australia contributed to the lowest level of wool production in 50 years. This record low production has driven up prices sharply in Australian wool markets. Meanwhile, the price of raw cotton increased significantly for the first time in many years. From the scenario described, answer the questions below. (30 points) a. Illustrate this event with a single supply-demand graph for the Australian wool market and a corresponding single supply-demand for the raw cotton market. Indicate on your graph (i) the initial equilibrium before the decrease in the supply of Australian wool and (li) the final equilibrium. Using arrows on the graphs, indicate any shifts in the demand and supply curves for each market. Label your graphs fully. (20pts) b. In a few sentences write an explanation of the supply and demand changes in the two products. (10pts)