Build-Right Concrete Products Produces Specialty Cement Used in Construction of Highways.Build-Right

question 39

Multiple Choice

Build-Right Concrete Products produces specialty cement used in construction of highways.Build-Right is a price-setting firm and estimates the demand for its cement by the State Highway Department using a demand function in the nonlinear form: $Q = a P ^ { b } M ^ { c } P _ { R } ^ { d }$ where Q = yards of cement demanded monthly,P = the price of Build-Right's cement per yard,M = state tax revenues per capita,and $P _ { R }$ = the price of asphalt per yard.The manager at Build-Right transforms the nonlinear relation into a linear relation for estimation.The estimation results are presented below: Given the above,the estimated demand for cement is

• A)elastic because \(\hat { E }\) = -4.0.
• B)elastic because \(\hat { E }\) = -2.0.
• C)elastic because \(\hat { E }\) = -1.5.
• D)inelastic because \(\hat { E }\) = -0.32.
• E)inelastic because \(\hat { E }\) = -0.8.

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Definitions:

Unspecified Pathogen

A term used when the specific cause of an infection or disease is not identified or defined in a diagnostic process.

Acronym

A word formed from the initial letters of a name or by combining initial letters or parts of a series of words.

Severe Sepsis

Sepsis with signs of acute organ dysfunction.

Organ Dysfunction

A condition where an organ does not perform its expected function.