Using Excel, Best Paints estimates the log- linear weekly demand function for their gallon sized paints to be ln Q^d = 16.23 - (1.85 × ln P). At a price of $35, what is the predicted natural logarithm of the quantity (ln Q )? A)0 B)15,562.20 C)9.65 D)- 48.52

Question

Quizplus · Accepted Answer

ln Q = 16.23 - (1.85 × ln 35)
= 16.23 - 2.8472
= 13.3828 
Therefore, the predicted natural logarithm of the quantity (ln Q) is 13.3828.

Using Excel, Best Paints Estimates the Log- Linear Weekly Demand