The market research department for a drugstore chain chose two summer resort areas to test-market a new sunscreen lotion packaged in 4-ounce plastic bottles. After a summer of varying the selling price and recording the monthly demand, the research department arrived at the following demand table, where y is the number of bottles purchased per month (in thousands) at x dollars per bottle:

(A) Use the method of least squares to find a demand equation.

(B) If each bottle of sunscreen costs the drugstore chain $4, how should the sunscreen be priced to achieve a maximum monthly profit?

Transcribed Image Text:

X 5.0 5.5 6.0 6.5 7.0 y 2.0 1.8 1.4 1.2 1.1