Uhhh Im not sure what economics courses you guys took, but price DOES affect demand. It's an inverse relationship. As price increases, demand decreases. If pizza cost $400, the demand for them would certainly decline. Wouldn't matter how many pizzas you made, at $400, people couldn't afford them. They would instead opt for some other food. Which is what happened with the Yugo. If the Yugo had only cost $50, a lot of people would have purchased them. However, that was not the case. It was more like a $400 pizza. The iPhone was successful because people were willing and able to pay $400 for a phone. Hence, the price didn't affect the demand or perceived value. In this sense, Apple found their price equilibrium. Also, the idea that more quantity supplied at a lower price creates demand falls apart with when applied to UNT football. FREE tickets are not incentive enough to fill out the student section during many games. In this instance there are other factors that affect demand. You have to create a product that gives people INCENTIVE to attend games (wins, notable opponent, pride in school) that's value is perceived to be a worthwhile way to spend their time, meaning it is greater than the the opportunity cost of what they could be doing (yard work, TV, homework, etc). That or you'd have to pay them to show up (lower price even further). Personally, I vote for the former.