Optimal price

The optimal price is that price point at which the total profit of the seller is maximized. When the price is too low, the seller is moving a large number of units but is not earning the highest possible aggregate profit. When the price is too high, the seller is moving too few units at a high margin per unit, and so achieves a lesser total profit figure. The optimal price is typically found through trial and error, to see which price point will result in the ideal unit quantity being sold.