"Elasticity of demand" could certainly come into play with downloaded styles. I don't know that anyone could say whether much lower prices would work unless they tried it. As for me, I think it would. Would I pay $1 for a good style? In a heartbeat. I'd buy them regularly. $7? That's a stretch. Then again, I'm not programming styles and don't have any firsthand knowledge of the economics of style programming.
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Bill