Mostly no. The major drivers of price are supply and demand, not cost and demand. However, the “most profitable price” ( which is rarely the highest for those unfamiliar with economics ) does increase with the marginal cost. So the cost of production does play a role.
I’m not an economist so I could be wrong, but this is my thought process about it:
If a product becomes too expensive to produce for some companies, those companies will stop selling it.
Less companies selling the product = less offer
less offer = higher price.
Mostly no. The major drivers of price are supply and demand, not cost and demand. However, the “most profitable price” ( which is rarely the highest for those unfamiliar with economics ) does increase with the marginal cost. So the cost of production does play a role.
I’m not an economist so I could be wrong, but this is my thought process about it: If a product becomes too expensive to produce for some companies, those companies will stop selling it. Less companies selling the product = less offer less offer = higher price.