0.5$ to 1$ is a decent price if you buy a CD at the store. You then need to pay for the whole distribution part, the physical CD and the profit of each person involved in the whole chain.
Please do not set your buying prices at what you are willing to pay. Set them at what they are willing to ask (and still make a profit).
The reason the labels are not giving what consumers want is because consumers tell them they are willing to pay 1USD. Now obviously there are solutions. bandcamp.com is one of them. 80-90% goes to the copyright holder and there that is most of the time the people who make the music. No DRM and flac if you want it.