Why do you assume this has anything to do with a supply/demand curve? Because that’s the first thing you were taught in Econ 101 and it stuck?
In reality, most people aren’t that sensitive to small changes in price. And the demand drop is not instant. It might take months or years. Execs make the decision to raise the price, they don’t see the demand drop off immediately, and they instantly absolve themselves of any responsibility for the effects of their price increase. After all, there was hardly any demand drop in the quarter in which they made the change.
Look at say, Coca-Cola. You could easily double the price in five years and the price is negligible enough that most people won’t even notice. (Oh wait, they did this.)