How Would You Represent Consumer Preferences for Frozen Foods as Dummy

question 83

Essay

How would you represent consumer preferences for frozen foods as dummy variables if the respondents were classified as heavy,medium,light,nonusers?

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Definitions:

Price Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating the sensitivity of demand to price changes.

Quantity Demanded

Refers to the total amount of a good or service that consumers are willing and able to purchase at a given price level in a specified time period.

Price-elasticity of Demand Coefficient

measures how much the quantity demanded of a good responds to a change in the price of that good, calculated as the percentage change in quantity demanded divided by the percentage change in price.

Absolute Value

A number's distance from zero on a number line, without considering its direction; essentially, it is the non-negative value of a number.