What is the break-even sales unit?

Are price increases equivalent to hypothetical increases in unit sales?

• Let's say a company releases product A and they initially charge $100 per unit. A few months later they add a new feature to product A and initially charge $110 per unit for this new product--effectively claiming this new feature represents a 10% value increase to consumers. Now let's say instead of charging $110 for product A w/ new feature, they charged $100. Based on the 10% value increase above, is it fair to expect a 10% increase in unit sales? Or is this comparing apples to oranges? Thanks!

• Answer:

  It is comparing apples to oranges and there is no direct connection between the two factors. If the customer truly believes he is in fact getting a 10% better product at he same price, then this product is more competitive in the open market and the sales could increase much more.