It goes like this: "We doubled the prices of 
    food expecting demand to go down, but it went 
    up!"

I've had that experience selling (small, cheap, non-critical) software* to end users (i.e. not business or bespoke solutions). When I released at $10 I got a lot of complaints about the price (including many "it should be free!"), panicked, and lowered the price.

I later experimented with various price points (without announcing, just changed the price on the home page) & lo and behold- I sold as many units at $9.99 as at $4.99 and $6.99 (I didn't dare raise it beyond the launch price)!

The corollary is to not listen to customers saying what they want, but to observe what they buy.

* this was in 2011 and that particular market has changed since, please do not email me asking "how to make money selling software online" - I don't know!