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 = aPbMc
where Q = yards of cement demanded monthly, P = the price of Build-Right's cement per yard, M = state tax revenues per capita, and PR = 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: 
height="198" width="577" />Given the above, if tax revenue per capita (M) increases 5%, the estimated quantity of cement demanded will
A. increase more than 1% but less than 5%.
B. increase more than 5% but less than 10%.
C. increase by less than 1%.
D. increase more than 10%.
Answer: A
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