I can vouch for this as well with my app (http://www.teaapp.com )--it appears to be unit price elastic, based on some price experimentation I did on it at launch (varying between $1.99 and $4.99).
In spite of this my intuition tells me to price it at $.99 when Apple features it, and between $1.99 and $2.99 when people are hunting for it.
In spite of this my intuition tells me to price it at $.99 when Apple features it, and between $1.99 and $2.99 when people are hunting for it.