a.List two determinants of the price elasticity of supply.

b.Evaluate the following statement: "A farmer is producing wheat (a necessity) on his land. The total production of wheat is Q1 bushels. The price per bushel is $P1. Due to the introduction of new hybrid seed, the farmer's productivity increases, and total production increases from Q1 to Q2. At the same time, the increase in production lowers the price from $P1 to $P2. The introduction of new hybrid seed improves the living standard of the farmer."

c. Assume that the income elasticity of demand for good X is 3.69 and the cross-price elasticity is 1.16. What would happen to demand for X if there is an increase in income and an increase in price of Y? Explain your answer.