Question
The McCauley company hires a marketing consultant to estimate the demand function for its product. Theconsultantconcludesthatthisdemandfunctionis Q = 100P3.1I2.3A0.1 where Q is the quantity demanded
The McCauley company hires a marketing consultant to estimate the demand function for its product. Theconsultantconcludesthatthisdemandfunctionis Q = 100P3.1I2.3A0.1 where Q is the quantity demanded per capita per month, P is the product's price (in dollars), I is percapitadisposableincome(indollars), and Aistherm'sadvertisingexpenditures(in thousands of dollars).
Q: Price /Income/ Advertising elasiticity is calculated in solutions (bookmarked question) by taking a log of demand function I want to know why we have done that? Is there any other way to solve this?
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