I wouldn't buy one for 50 dollars, so you'd lose plenty of potential buyers with that kind of price. In reality, you'd sell more of your Widgets when charging 5 dollars. If you could sell the same amount regardless of the price, then you'd sell it for 50. That's never the case though.
Obviously you're going to sell fewer at a higher price. The question is which price generates the most profit. If you could find 50 buyers for something at 10 bucks, but only 30 buyers at 20 bucks, you're still making more money at the higher price.
Obviously you're going to sell fewer at a higher price. The question is which price generates the most profit. If you could find 50 buyers for something at 10 bucks, but only 30 buyers at 20 bucks, you're still making more money at the higher price.