A demand function has been estimated in natural log (designated by ln) form and is lnQx = .693 - 2*lnPx + .5*lnINCOME + .05*lnPy. Write the complete demand function in the multiplicative function format (rather than the ln format).
As per the question demand function in natural log is :-
As we know,
So, Using it we can write
Now, We know,
So, Using it we can write our demand function as :
Now, Using exponential function e on both sides to get rid of ln function :-
So,
So, The demand function in multiplicative form is :
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