Based on the estimation of the parameters of the model, the price
premium between the non-frozen and frozen product can be
calculated. In the following equation, lnq represents estimated value
for frozen food. To make calculations easier a dummy variable was
defined. This dummy variable measured independent variables of
the demand equation, which are price, income and whether or not
the product is frozen. In this equation, P1 represents the price of
the frozen product; I represent the income variable and D
represents the dummy variable that measures whether or not the
product was frozen. The dummy variable represents a value of 0 or
1 (frozen=1).