Now go to your local bookstore and find books in your genre that is the same binding (hardcover or paperback) and have the same number of pages. What are those cover prices? If there's a difference of 10-20%, you're still in a competitive range. If your book is double or triple the price of similar books in the bookstore, your publisher thinks you aren't going to sell many books and they are jacking up the cover price to increase their profits.
If you want to be a best seller, run away from jacked up prices. If you just want to sell to family and friends, this is OK if your friends and family are comfortable financially. For a high cover price, make sure you're not paying any upfront fees such as cover design, electronic set up or distribution charges like a subsidy publisher asks.