If demand is estimated using the empirical specification $\ln Q = \ln a + b \ln P + c \ln M + d \ln P _ { R }$ ,then an equivalent expression for demand is
A) $\ln Q = a + b P + c M + d P _ { R }$ .
B) $Q = a + b P + c M + d P _ { R }$ .
C) $Q = e ^ { a } + b P + c M + d P _ { R }$ .
D) $Q = a b P c M d P _ { R }$ .
E)none of the above

Question

Quizplus · Accepted Answer

The correct transformation of the given empirical specification $\ln Q = \ln a + b \ln P + c \ln M + d \ln P _ { R }$ into an equivalent expression for demand would involve exponentiation to remove the natural logarithm, but none of the provided options correctly applies the mathematical rules for exponentiation and logarithms to the given equation.

If Demand Is Estimated Using the Empirical Specification ln⁡Q=ln⁡a+bln⁡P+cln⁡M+dln⁡PR\ln Q = \ln a + b \ln P + c \ln M + d \ln P _ { R }lnQ=lna+blnP+clnM+dlnPR​

If Demand Is Estimated Using the Empirical Specification $\ln Q = \ln a + b \ln P + c \ln M + d \ln P _ { R }$