In short, yes it does. It is the single most important factor which affects your ORS rating, which in turn determines how highly your flight is rated for a particular route. Whether it actually produces more bookings is a lot more variable and is dependant on demand, competition and connections.
For a more detailed explanation on how price and other product/image factors impact the ORS rating, see my reply in a previous thread (Questions about the ORS booking system - #2 by webbo)