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Why might a cobalt supply forecast be inaccurate?

medium📝 Analysis Q7 of 15
EV Technology - EV Industry and Policy
Why might a cobalt supply forecast be inaccurate?
ACobalt demand is always constant
BUnexpected political events disrupt mining
CCobalt is easy to substitute with iron
DMining technology never changes
Step-by-Step Solution
Solution:
  1. Step 1: Understand factors affecting forecasts

    Political events can suddenly change supply availability.
  2. Step 2: Evaluate other options

    Demand varies, substitution with iron is not practical, technology evolves.
  3. Final Answer:

    Unexpected political events disrupt mining -> Option B
  4. Quick Check:

    Forecast errors = political disruption A [OK]
Quick Trick: Political events cause supply forecast errors [OK]
Common Mistakes:
  • Assuming demand is constant
  • Thinking iron substitutes cobalt
  • Ignoring political risks

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