This is case study

Questions

1.

Would the demand for

the Wii console

be relatively inelastic

or relatively elastic? State why.

2.

Would the supply for the Wii console be relatively inelastic or

relatively elastic? State why.

3.

Draw the demand and supply curves as you

have described

them

.

4.

Was the

severe shortage for over two years an old marketing

ploy called intentional scarcity, in which a company purposely

keeps its hot product in

short supply to build buzz. Or wa

s

it

simply bad planning on Nintendo's part?

What did

this mean

for households? What wer

e the implications for Nintendo?

5.

Can you suggest a reason why Nintendo dropped the price of

the Wii Console in late 2009.

How would you expect this to

affect revenues