Refer to the Following

Multiple Choice

refer to the following:
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:
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-The estimated demand for cement is

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