It has nothing to do with the economy. There are people out there paying a lot more money than this for their wedding photos. Right now, this very minute, someone is writing a fat check.
Pricing...and this is a universal lesson in economics...is about perceived value. If what you have to offer is what I perceive to be a fair cost, then I will buy what you're selling. The trick with pricing is to appeal to a mass number of individual perceptions of value. Businesses must charge a fair price while still making a profit. Different people will abandon their general rule of value for different reasons such as:
Convenience - The item costs more here, but I'm in a hurry.
Dislike for others - I pay more at Store A because I don't like shopping at Store B
Loyalty - It may be cheaper at Store C, but I've always shopped at Store A
Photography is a service industry. Yes, we're offering a physical product that we manufacture so to speak, but it is still a service. Photographers as a whole have devalued themselves because they are trying to compete on price, not value. Most of us here know the difference between a pro photographer, and cousin Tim with "one of them there fancy picture clickin' machines". Honestly, I think most consumers do too. But from what I've seen, read, and heard, there's a lot of pro photographers out there who take great photos...but are stupid when it comes to running a business.
If pros continue to try and sell on price instead of service and value, they're going to go out of business. It's really that simple.