Problem
a) A fisherman uses his own boat for fishing, while another fisherman uses a rented boat. It is to be expected that fisherman with his own boat will charge a lower price for fish than fisherman with rented boat, since his costs are lower.
b) An important role of Price System is its role in allocation of resources, i.e. redirection of productive resources from sectors of excess demand to sectors of excess supply.
c) When price of one good decreases, consumption possibilities of both goods generally increase.