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How much should Nintendo charge for a video game console? In response to a sales slump, in 2013 Nintendo dropped the price of the Wii U video game console. The following month, they sold three times as many units, which suggests their plan worked. However, Nintendo may have gotten the price wrong.

In this lesson, students use linear and quadratic models to analyze and discuss the relationship between the price of a Wii U console and profits for Nintendo.

- More revenue for a product doesn’t always mean more profit – there are costs to consider.
- A company might increase its revenue – and even its profit – on a product by lowering the price.
- Companies might decide to set a price for a particular item at something that doesn’t lead to its biggest profit in order to increase revenue elsewhere.

- Use real data to create and interpret a linear model for demand as a function of price
- Use real data to create and interpret a quadratic model for total profit as a function of price
- Find and interpret the maximum of a parabola