I'm trying to create a demand curve to measure the demand of an asset as a function of its price. In research I've found others who have determined using empirical data that:
$ ln(q) = -0.7ln(p) $ where q is the qty demanded and p is the price of the asset.
The above implies that the %change in $q = -.7*$%change in p given the log transform.
However if I raise e^() to both sides of the equation I cannot seem to find the quantity as a function of price formula:
$q = p^{-.7}$
The above clearly doesn't give the quantity function. I can't seem to figure out what I'm missing? I suspect Q is some type of exponential function of price p, but how do I find that from the above natural log equation?
$q = p^{-0.7}$ looks like a quantity function.
You don't give any units, so this is a terrible graph...