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

question 13

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,if the price of asphalt ( $P _ { R }$ ) decreases 20%,the estimated quantity of cement demanded will:

• A)increase 12%
• B)increase 6%
• C)increase 1.2%
• D)decrease 12%.
• E)decrease 1.2%.

---

Definitions:

Cultural Resources

The collective symbols, beliefs, practices, artifacts, and institutions that individuals inherit and use to define their cultures and identities.

Worthy

Deserving attention, effort, or respect due to qualities such as importance or nobility.

Major U.S. Television Networks

The dominant television broadcasters in the United States, traditionally including NBC, CBS, ABC, and FOX.

Professional Women

Women who engage in careers that require specialized knowledge and often long-term and formal education.