The whole article is based on a strawman. Who contended that reducing price per unit by an order of magnitude would result in an equal increase in volume?
Pricing at a dollar is a definite advantage for certain products which have mass appeal and have potential for massive volume ( Ex: Angry Birds ). People are significantly more likely to buy something that's only mildly interesting if it costs an insignificant sum like a dollar.
If you sell a textbook on Applied Thermodynamics for a dollar though, you sir are an idiot!
Pricing at a dollar is a definite advantage for certain products which have mass appeal and have potential for massive volume ( Ex: Angry Birds ). People are significantly more likely to buy something that's only mildly interesting if it costs an insignificant sum like a dollar.
If you sell a textbook on Applied Thermodynamics for a dollar though, you sir are an idiot!