Explore BrainMass

Elasticity Demand Curves for Bricks

In 1979, in a isolated small town, 100,000 bricks were sold at $1.20 per brick. In 1980, 120,000 bricks were sold at $1.50 each in the same town. This data could provide evidence of:
A) a totally elastic demand curve for bricks.
B) an unitary elasticity of demand for bricks.
C) a contraction in the supply of bricks over time.
D) a shift in the demand curve for bricks over time.
E) none of the above.

Solution Preview

For the two years, the quantity sold is increased by 20,000 bricks, while the price also ...

Solution Summary

The solution answers the question(s) below.