Questions 9-11

9. Explain why a fall in the supply of farm products may lead to larger incomes for farmers. 10. What are the main determinants of price elasticity of supply? 11. You run a fish boat in Burgeo, Newfoundland. You have caught a certain amount of fish which you must sell within a certain time because you have no cold-storage facilities, and you do not want the fish to go bad. What is the price elasticity of supply in this situation? Would it be different if you had cold storage facilities?