Explain the following

Using a graph.

A company sets the price of its product at $100.00. No one wants the product, so the price is lowered to $90.00. Demand for the product increases at the new lower price point and the company begins to make money and a profit. The company could lower the price to $50.00 to increase demand even more, but the increase in the number of people buying the product would not make up money lost when the price point was lowered from $90.00 to $50.00. The company leaves the price set at $9.00 because that is the point at which supply and demand are in equilibrium. Raising the price would reduce demand and make the company less profitable, while lowering the price would not increase demand by enough to make up the money lost