Wow. Good thing all LSA producers are on the same page when it comes to pricing methodology. Imagine what would happen if some rogue LSA manufacturer tried to undercut the competion by offering a lower price. It would throw the whole elasticity thing out of whack.
It doesn't change the elasticity of the market. That's the problem. Elasticity is in large part a measure of current vs. potential market size. The market has for decades offered aircraft in the sub-$20,000 range (used part 23, 103 ultralights, some homebuilts, etc.), on up. Everyone who could be pulled in by the idea of a $20,000 two-seat plane is already in, thanks to used Cessna 150s. Sport Pilot licensing increased the size by reducing the medical certification burden, but that has been very very slow to materialize as a real gain in market size.
The reality is that most people don't fly because they have no idea how to start flying, they have preconceived notions about the price, and frankly flying scares them.
When a new LSA comes on the market with a low relative price, say $60k, it is competing against $20k used planes on the secondary market, kit makers who claim $60k plus some sweat is enough to buy a kit and get a better plane, etc. As a result, the new LSA maker doesn't see a sales volume advantage relative to their $100k+ competitors. They sell for less but don't pull buyers away because there are already more planes than buyers. By raising their price to $100k, they retain most of the customers who would buy their plane anyway, and get an extra $40k per sale. A win all around.
Hyundai is selling into a huge, stratified, and within each strata very elastic market. Everyone buys cars, and they all price shop, and they hop levels based on price and perceived benefit all the time. Introducing a new car at used car prices will pull latent "must have it, don't like used, want cheap" buyers off the secondary market and into new car dealerships.
I would love to see the GA/LSA market become similar to the car market. What is missing isn't lower prices, and what is preventing it isn't the high cost of building aircraft. It's very simply the size of the buyer pool. Add more potential buyers (which helps to raise the market elasticity) and prices will go down.