[SALChamps03]

Also, lower prices result in more units sold, and eventually more profit.

[expatpat]

That is naive, fails Econ 101. If the market is not very elastic, you get very little extra volume if you lower prices, and you get LESS profit.

If a businessman gets 10% less volume when he raises his prices by 20%, guess what he is going to do? Read if you can't guess, read an elementary Economics textbook.