Exactly. I’ve read a study on this done on Scotch Whiskey. Most people have a minimum price in mind as well as a maximum for the product. If it’s too cheap, the assumption is that it is not of the quality the customer is looking for.
I thought bait-and-switch (which I think is what you are describing) was illegal everywhere. As I understand it if a store advertises item-X at a given price it matters not if they only have one in stock. If they tell you that they are out of the item they must give you a rain check for the item at the price advertised.
That said I do see ads that say “While supplies last” and we all know airlines will sell two cheap seats on a plane while the rest are overpriced so it seems there is wiggle room here. Perhaps an attorney will shed some light on this.