Question

Scientists have created a new grass seed that stops grass growth at a specific length, eliminating the need to mow the lawn. The price of this seed is high, but many consumers still want to use it. As a result, several different producers supply a large amount of this seed to consumers. In order to attract consumers to their product, some producers lower their prices and supply fewer bags of seeds.



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

a good with an elastic supply

Explanation: Many different producers can supply large quantities, and when price falls they reduce the quantity supplied — indicating supply responds noticeably to price changes (elastic supply).