Apple Thoughts: Variable Pricing Hurts Sales Rankings

"Two days after the Apple iTunes Music Store raised prices on some individual tracks, there was evidence the increases have hurt the sales rankings of songs given the higher $1.29 price," Glenn Peoples reports for Billboard. "On Wednesday, one day after the price increase, the iTunes Top 100 chart had 40 songs priced at $1.29 and 60 with the original $0.99 price point. The $1.29 songs lost an average of 5.3 places on the chart while the $0.99 songs gained an average of 2.5 chart positions," Peoples reports."

Just proves the point that when you increase price, demand will go down and vice versa. I think I learned this in economics. If this continues, the record labels might not like this tiered pricing after all.