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

question 101

Multiple Choice

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

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Definitions:

Held-To-Maturity Investment

An investment in debt securities that a company has the intent and ability to hold until maturity.

Market Yield

The annual income return on an investment, expressed as a percentage of the market price of the investment.

Unrealized Gains

Profits from investments that have increased in value but have not been sold, and therefore are not yet considered income.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its net identifiable assets, reflecting the value of the company’s brand, customer relationships, and other factors.