Use the demand information given in Exercise 7 for this exercise. Each game owner buys an average of 10 video games. You earn $10 profi t per video game. What price should you charge for the game console?
Exercise
Suppose it costs $250 to produce a video game console. A price between $200 and $400 is under consideration. Estimated demand for the game console is shown in the following table. What price should you charge for game console?
|
Price
|
Demand
|
|
$200
|
50,000
|
|
$300
|
25,000
|
|
$400
|
12,000
|