[78-L] Price $7.00 for Single Sided 12" 1912 Victrola Record?

[78records at cdbpdx.com]

I was digging through some old classical 78s and found a 12 inch single sided red label Victrola Record (# 96200) dating c.1912 or so with a price on the label of $7.00.  That has to be equivalent to $300-$400 or more today.  There couldn't have been many of those sold.  It seems only 2 of this variety were released.  Not too surprising.  
 
You can view the label here:
 
http://78rpmrecord.com/labelshow.cfm?whichLabel=2049  
 
I have 2 questions:
 
Isn't that just about the most expensive recording ever sold in a retail setting, relatively speaking?
 
What were they thinking??
 
Thanks!  CDB