Final answer:
The importance of understanding the economic law of demand is emphasized when releasing new video games, as showcasing how demand changes with price using a demand schedule can be critical in setting an optimal price point for the game.
Step-by-step explanation:
When new video games are released, it's crucial to highlight how the demand for the game varies with its price. This concept is illustrated by a demand schedule, which is a table demonstrating the quantity of video games consumers are willing to purchase at different price levels. As the price decreases, we can observe an increase in the quantity demanded. This relationship is known as the law of demand, which is a fundamental principle in economics that states that, ceteris paribus, when the price of a good falls, the quantity demanded will usually increase, and vice versa.To effectively market the game, it is important to consider this relationship when pricing the game. If the game is priced too high, demand might be limited; conversely, setting the price too low could increase demand but reduce the overall revenue. Therefore, finding the right balance in the pricing strategy is essential for the success of the new release.