Well I don't think anybody will argue with that Leebase other than it is a very simplistic one size fits all statement. Those concepts are included in Econ 101 textbooks because in a generalized manner they are true and they fit most industries well when viewed without much attention to detail and exceptions.
I'm fairly firm in my belief however that if you start nitpicking apart the details and try for a goal a little more grand than "We want to stay in business" you will find it certainly is possible to price too high/as well as price too low and still stay in business. Its even possible to do both of those at the same time.
For instance - say you are willing to pay $12.99 for an eBook and I'm willing to pay $8.99 and the costs associated with the book are $7.99.
Price at $8.99 and sell two books. Company makes $2
Price at $12.99 and sell one book. Company makes $5
However, find a way to sell you the book at $12.99 and me the book at $8.99 and make $6. Amazon actually played around with that a couple of years ago - showing different prices on the screen for different customers based on customer data. They got caught and faced a huge PR scandal over it.
There are statistical wizards who make fortunes studying these pricing models and I can pretty much guarantee you that any Publisher who is declaring every new release hardback book should be priced at $12.99 for every customer is at times priced too high.
But you've already admitted that when you said impossible you didn't mean impossible - so I guess you know that.
