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

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.