Don't get me wrong, I believe in the laws of supply and demand as much as they do. But I also believe that social context matters. Not every social interaction is, or should be, a for-profit market. In this case, profiteering should take a back seat to cooperation and fellow-feeling, which are among the "Moral Sentiments" Adam Smith wrote about in his book of that title, which is less read but every bit as important as his Wealth of Nations.
Some might be inclined to look upon this episode as a natural experiment confirming the natural acquisitiveness (or greed) of humans. In fact, we cannot generalize from this case to the population as a whole because the subjects are, after all, business students.They are not representative of human subjects.
Still, it's a black eye for the IU and especially the Kelley School