In the summer of 2013, Nintendo dropped the price of the Wii U game system in response to a sales slump. It worked: in the following month, they sold three times as many consoles in North America. But did Nintendo end up leaving money on the table?
Students use linear equations to model demand and per-unit profit for the Wii U. They then use that information to develop a quadratic equation that relates retail price and total profit in order to find the price that would have led to the highest possible profit for Nintendo.