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Howie Jones, owner of Blue Ridge Hot Tubs is facing a new problem Although sale of the two hot tubs manufactured by his company Agua-Spa and Hydro-Luxe have been brisk, the company is not earning

Howie Jones, owner of Blue Ridge Hot Tubs, is facing a new problem. Although sale of the two hot tubs manufactured by his company, Agua-Spa and Hydro-Luxe, have been brisk, the company is not earning the level of profits that Howie wants to achieve. Having established a reputation for high quality and reliability, Howie believes he can increase profits by increasing the prices of the hot tubs. However, he is concerned that a price increase might have a detrimental effect on demand, so Howie has engaged a marketing research firm to estimate the level of demand for Aqua-Spa and Hydro-Luxe at various prices. To analyze possible relationships between the price and market demand, Howie Jones collected information on the monthly product prices and respective demands for each hot tub in the last 18 months. See the data below.

Aug 01 2020 View more View Less

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