But this is, of course, an optimistic scenario. Let's think of other scenarios.

This is telling us that if the selling price increases, then this will become a larger negative number so we're going to sell fewer, we're gonna sell a smaller quantity.

So let's say it's 1.05.

The new model will retail for 30,000 yen.

Well, I won't define the vehicle for you, but I will define the cost for you.

But this time, we have resellers and the resellers don't work for us.

Because to get that banana to your store, you need to use some gasoline.

So over here let me draw a better graph than that.

Un bundling is just a fancy word for saying can I somehow decompose the product into separate pieces, giving some for free or if you're lucky, charging for everyone of them.

Cost of goods sold, well that's just the cost of the goods sold.

So we all have this kind of you could say, paper wealth here of 1 million.

Notice that the selling price is written in red.

Then again for your revenue stream.

How big is this and what's the percentage marketshare realistically you could get?

Sell, sell, sell.

You might at first say I could put any t there, but think about the actual reality of what he's doing.

So in the last one, I touched on a little bit that the real lever that I, as the owner of my cupcake factory, can change is price.

Over here, this axis right here is going to be the selling price,

But it's also a morally important one.

Because batteries life cycle improve a bit of improvement on energy density, which reduces the price.

It's a fantastic device that we want to get in the hands of as many people as we can.

So if the sale is twenty five percent off of x, we could say that the new price, the sale price will be x minus twenty five percent of x is equal to the sale price.

So what, how can we figure out how to maximize this profit?

So, in our training set we're given a number of examples where we know x decides the house and we know the actual price of what it's sold for.

So, let's say, I cut prices below Imran because I realize this increase price strategy was kind of silly.

Or if we just wanted to round to the nearest penny, since we're talking about selling something, this optimal profit, this optimal profit, will happen at a selling price of 23 and 30, 23 and 33 cents.

So technically I guess prices can be rounded off to the nearest cent.

They want to encourage high volume purchases, and so they have stepped pricing that is oriented to create volume.

liquidity and things like that in the future.

We get 30 s squared plus 1400 s minus 16000.

Anyone making money on a stock, as long as they're not manipulating it, on either the short or the long side, is actually a net asset for the stock.

Let's say this was for 2008.

I love Lego Mindstorm, is which a wonderful way to experiment with these things.

What do you sell?

We are going to give all that stuff to companies and those companies will then sell these boxes.

let's say that they are traded in some market.

So it turns out that those fuels and technologies exist, and this is an example of that this is a solar LED light bulb that we sell for a retail price of about 10 dollars in rural Haiti.

And they'll essentially come up with some price, which is essentially as high a price as they want do a high price because obviously as a company,

Quite an idea of yours... selling dealerships for cars that don't exist.

What drove prices to increase so fast?

And what we'll do in future videos is we'll actually explore situations in which that does happen.

Now the East India Company would sell the surplus tea directly through hand picked consignees in America.

And at first, maybe in 2008, they all say, you know what, this is temporary, that was just a fire sale price, and these auctions don't really reflect a market reality.

Sum from i equals 1 to M of the square difference between this is the prediction of my hypothesis when it is input the size of house number i, right, minus the actual price that house number i will sell for and I want to minimize the sum of my training set sum from i equals 1 through M of the difference of this squared error, square difference between the predicted price of the house and the price that it will actually sell for.

So it makes sense for me to see if there's any maybe there's some people who want cupcakes, who can't get them because I can't produce that many.