SUPPLY- DEMAND-ELASTICITYYou are now an economist and have been asked by the federal government to evaluate the following statements about farmers.Explain whether the following are TRUE or FALSE, and why.

a)'The price elasticity of demand for western farmers grain is less than one, E<1,therefore any increase in production can actually make the farmers worse off'.?

b)"Thecross elasticity of demandfor grain and product 'X' is negative, therefore an increase in the production of grain will lead to a decrease in thepriceandquantityof both goods."