Does a cheap tier cannibalize customers who are willing to pay full price?

When we launched our entry-level tier, signups increased, but sales for our main standard plan stalled. We realized that high-intent buyers who were fully prepared to pay our regular rate were opting for the budget tier simply because it was visible on the pricing table.

Removing that safety option dropped overall signup numbers slightly, but our total monthly recurring revenue (MRR) went up because users moved directly to the standard plan.

If you've removed a budget plan did it force high-intent buyers to commit to your core tier or did you lose them entirely?