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: where Q = yards of cement demanded monthly,P = the price of Build-Right's cement per yard,M = state tax revenues per capita,and = 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 )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%.

Question

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:  where Q = yards of cement demanded monthly,P = the price of Build-Right's cement per yard,M = state tax revenues per capita,and  = 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  )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%.

Quizplus · Accepted Answer

The Answer of 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:  where Q = yards of cement demanded monthly,P = the price of Build-Right's cement per yard,M = state tax revenues per capita,and  = 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  )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%.

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