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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. < p class="plan"> 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.

### Students will

• 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

### Before you begin

Students should be able to write the equation of a line given two points, and they should be able to interpret the important features of a linear equation. Some familiarity with quadratic function will also be useful, though this lesson can be used to teach students how to find the maximum of a quadratic function given its roots.