CDs, like movies in the theater, are kept at an artificially high price even though it has been all but proven that the price is above what people are willing to pay. If a CD's maximum price was $11.99, I would buy more of them. If movies were about half the price, I would attend more of them. The reasoning behind a refusal to set up tiered lower price points when you're clearly way too far on the supply/demand curve is beyond me.
And forgive the tangent, but the theater thing bugs the hell out of me. Why would theater owners charge the same price for old and new movies when it means that at any given moment, at least three of your movies only have two people in the theater??