When I studied economics in college, I learned about reverse demand curves:
there are some luxury items that the demand increases when the price goes
up,

I'll bet your prof tried his damndest to get you to remember that it's
the *quantity* that goes up, not the demand. "Demand" is the
*relationship* between price and quantity, and consequently is not
itself affected by price changes.

(Just nit-picking, but after grading papers for 34 years, it's hard to
quit.)

But in this case, I suspect it's the monopoly position of the supplier
that explains the high price. Many years ago, someone calculated what
a plain old Chevy would cost if one bought all the parts and assembled
it himself. Far and away more than the price of the car.

vince norris