[ashishgandhi]

Also if you can only produce n where n < d (d, is the demand) you might just as well raise the price of those n pieces produced until n = d.

You can use the profit to create an umbrella brand and increase production. The extra items from the increased production (from the extra profit) can be sold at a different price under a different brand so to let people who can afford to pay more, pay more, and get to feel special.

Note: I think the OP was just trying to say if it costed less, he would shop more. He might not have meant he'll buy exactly double.