Apparently Smuffin doesn't understand elasticity of demand.
I never considered video games to be so inelastic.
Also, I'm making some assumptions here. The increase in price to $120 would HAVE to be justified in some way. Either the dollar falls in value (in which case you're paying the same amount in real dollars), or the quality of video games doubles, or the demand for video games somehow rises in which case the price increase seems justified by market forces.
I suppose that if tomorrow, the exact same video games we have now doubled in price and no other conditions changed, then yeah, sales would plummet, at least in the short term. But that's a ridiculous assumption and a completely unrealistic scenario and I guess I just assumed red sox wouldn't bother asking such a pointless question.
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SmartMuffin - Because anything less would be uncivilized
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