Okay, but it turns out that people will pay whatever it takes to keep food, water, and shelter. So if price analysis were as simple as you seem to think, everyone will eventually be completely emiserated by spending the entirety of their income on simply staying alive.

Which is why we have laws to keep prices close to "what a thing costs to produce", and companies can't just take advantage of inflation to raise their profit margins; since, when they've historically done this, it kills a ton of people.