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They will get a reduced amount of cash during sales (and as always 30% goes to Valve), but this is theoretically made up for with the increased quantity of sales.
Any other questions/questions left? :)
http://www.pcgamer.com/terraria-devs-explain-steam-sale-price-hike/
just one example, but gives you an idea of how the system works. Devs can also make their own sale prices, like Weeklong sales, or those not tied to big events, midweek or weekend sales. Midweek/weekend/seasonal sales are curated by Steam but developers submit their sale prices to steam for consideration.
Note if you wish to support a developer, see if they have the game for sale at their own website. Generally those portals charge the dev less money. A Humble widget on a web page as far as I understand is like 5-7%, as opposed to steam's 30% cut (though if you buy from the Humble Store the total cut is 30% with much of that goign to charity). Just check if you get a steam key obviously.
As for the other thing. Not exactly. It's best to sell 500 for 10$ and then sell for 1$ to 10,000 who normally wouldn't buy it.