It’s a basic economic principle: as price increases, demand decreases. But that’s the beginner’s guide, and it doesn’t take psychological components into account. Because sometimes, when you raise the price – or simply attach a price tag at all – demand actually increases. And so does the perception of quality.
It makes sense. Charge a little more and create some value to your music. You must however, be very comfortable with your new pricing point otherwise it wont work for you.