Question

What is the best description of the grass seed that is described in this scenario?

a good with a low price
a good with a high price
a good with an inelastic supply
a good with an elastic supply

Answer 1

I don’t have the scenario text — could you paste it? I can’t pick the best option without those details.

If you want to decide on your own, here are quick rules to use:

- “a good with a low price” or “a good with a high price” — those describe its absolute market price; check whether the scenario says the seed is inexpensive or expensive.
- “a good with an inelastic supply” — supply doesn’t change much when price changes (short production time, capacity limits, seasonal production, perishable inputs, few suppliers).
- “a good with an elastic supply” — supply responds strongly to price (many producers, easy to ramp up production, storable inventory, easy entry).

If you paste the scenario I’ll pick the best answer and explain why.