Question: When the price goes up, the quantity demanded goes down and the quantity supplied goes up. What happens when companies set the wrong price? Listen

When the price goes up, the quantity demanded goes down and the quantity supplied goes up. What happens when companies set the wrong price? Listen to this story about Chuck E Cheese's

(http://freakonomics.com/podcast/chuck-e-cheeses-kid-can-learn-price-theory/) , then answer the following questions.

1.What's the danger of setting a price too high?What's the danger of setting a price too low?

2.How did Chuck E Cheese's single price policy contribute to the problem?

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