If the demand is more than the supply, the price increases.

I also agree with this, one of the basic aims of the token burn is to keep the demand-supply in check thereby reducing the excess tokens in the market to generate more value for the asset.

Another practical example includes Publicly traded companies buying back their stocks, which in turn reduces the number of shares in circulation in the idea to increase the value

Yes, this is similar to some burning of tokens in the crypto space. Binance was using a proportion of its profits to buy back BNB and burn them before they converted it to auto-burn now.