In 2020, Alderman & Sons, a small environmental-testing firm, performed 12,200 radon tests for $300 each and 16,000 lead tests for $230 each. Because newer homes are being built with lead-free pipes, lead-testing volume is expected to decrease by 12% next year. However, awareness of radon-related health hazards is expected to result in a 4% increase in radon-test volume each year in the near future. Jim Alderman feels that if he lowers his price for lead testing to $210 per test, he will have to face only a 6% decline in lead-test sales in 2021. Read the requirements.