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 = aPbMcwhere 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, the estimated demand for cement is

A. elastic because E = -1.5.
B. inelastic because E = -0.32.
C. elastic because E = -4.0.
D. elastic because E = -2.0.
E. inelastic because E = -0.8.

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Answer: E

Economics

The multiplier represents the ratio of the total shift in aggregate demand to the

A) initial shift in aggregate demand. B) total shift in long-run aggregate supply. C) initial shift in short-run aggregate supply. D) total shift in short-run aggregate supply.

Less than half of female-headed poor families are active in the labor market

Indicate whether the statement is true or false

The formula for nominal GDP is

a. Nominal GDP = Real GDP + GDP Deflator. b. Nominal GDP = Real GDP – GDP Deflator. c. Nominal GDP = GDP Deflator / Real GDP. d. Nominal GDP = GDP Deflator x Real GDP.

If we sum the private marginal cost curves of firms producing nuclear power, we create the

a. industry supply curve for nuclear power b. market equilibrium for nuclear power c. total value of the negative externalities generated by nuclear power d. optimal allocation of resources associated with nuclear power e. marginal externality cost curve for nuclear power