Analyzing Price-Change Trade-offs
A manager of a company selling a unique software application is evaluating two potential price changes to increase profit. The current situation is 100 licenses sold at $50 each. Option A is to raise the price to $60, which is expected to result in 80 licenses sold. Option B is to lower the price to $40, which is expected to result in 130 licenses sold. Without calculating the final profit, explain the fundamental trade-off the manager must analyze for each option.
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