Cherries: It was observed that as the price of cherries
increased, purchases of cherries decreased. The price
elasticity of cherries was estimated to be -0.69. It is found
that as the number of individuals in a household
increased, purchases of cherries also increased. There
was a positive relationship between consumer income
and cherry purchases. The dummy variable, representing
the representing the shift in demand to frozen cherries
was found to be statistically significant and positive. The
fact that the dummy variable was positive and statistically
significant indicates that consumers would be willing to
pay a price premium for frozen cherries. The price
premium that consumers would be wiling to pay for
frozen cherries was found to be 130.2%. l was found to
be statistically significant, which indicates that a
Heckman correction is required.