Ticketmaster and Live Nation have destroyed the concert experience. But it didn’t use to be this way. Today, Oasis and Taylor Swift tickets might go for thousands of dollars, but back in 1955, you could see Elvis Presley in concert for less than the modern-day equivalent of $20.
Which came first though? Either people stopped going (and they charged more to compensate) or demand increased (so they found they’d still fill the room at a higher price)?
Why do you assume this has anything to do with a supply/demand curve? Because that’s the first thing you were taught in Econ 101 and it stuck?
In reality, most people aren’t that sensitive to small changes in price. And the demand drop is not instant. It might take months or years. Execs make the decision to raise the price, they don’t see the demand drop off immediately, and they instantly absolve themselves of any responsibility for the effects of their price increase. After all, there was hardly any demand drop in the quarter in which they made the change.
Look at say, Coca-Cola. You could easily double the price in five years and the price is negligible enough that most people won’t even notice. (Oh wait, they did this.)