DEMAND CURVES SLOPE DOWNWARD
The record industry hasn't necessarily noticed, but blogger Fritz Schranck of Sneaking Suspicions has:
I certainly don't think I'm alone in deciding that $18 or so for a CD seems a bit steep, especially considering the quality of much of what passes for popular music lately. Knock the unit price down to $11 or so, however, and it's much easier for me to decide to buy two or three of 'em.
As I wrote in an NYT column that used book prices as an example:
People who love their products tend to underestimate how many tepid or wavering customers there are at a given price. They lose sales by thinking everyone will be as enthusiastic about the product as they are themselves and that potential customers will therefore be oblivious to a high price.
Or they lose sales by thinking that their product deserves a high price and that anything less is either disrespectful or outright theft.