For a tiny bit more context, the military market is a limited. Defense has N number of launches they need, regardless of price. If SpaceX pushes prices down by 50%, demand will not double or triple, at least not fast.

The commercial market will respond to price. SpaceX is all about lowering the price of space-access, and growing the market. More flights. New use cases.

Elon has a great grasp of microeconomics, at least the parts he needs. Tesla was also clever in this regard.