Season 5, Episode 10: Jenn Deese and Kelley Coughlan pitch Pursecase, a smartphone case that doubles as a small purse. Kevin O’Leary is flabbergasted by its high price and immediately argues they could change cut the price by 50% and sell ten times more than they are currently selling. In his mind, PurseCase is a product with very elastic demand – so elastic that he thinks they could lower the price and collect much more in revenue. Based on the sales numbers given in the video, students can actually calculate the elasticity of demand for this product perceived by Mr. O’Leary. Students sometimes have difficulty understanding how a company can make more money by lowering the price of a product. This is a good example to begin that discussion.
