[meric]

>> I attached two charts to illustrate that. I recently lowered the price of the iPad app (http://bit.ly/92xWv1) from 5 to 1 Dollars.

Try $3. I think it was a coincidence $5 and $1 had the same revenue. The maximum revenue price point should be in between. // guy who studied first year microeconomics.

[jmonegro]

Not necessarily in between, you'd have to draw a demand curve at various different prices to determine the optimum // guy who is studying economics

[nl]

He said "in between", not "exactly half way". The best way to draw a demand curve would be to get some data at the half-way point. // random person on the internet

[aptwebapps]

The optimum point might lie outside. The curve might even dip in between the two price points.

Edit: The operative word here is 'might'.

[nl]

Yes, it might.

But presumably the authors wants to maximize revenue while conducting experiments. Pricing at the midway point would seem to be the lowest risk way of getting additional data.

[carbocation]

True, but wouldn't you agree that nl's suggestion is the maximum likelihood guess?