I mean cost per item sold. Flat expenses should not factor in.
Of course it depends on supply and demand, but cost per item (which impacts profit per item sold) should definitely also factor in, and there’s almost no way for increased cost per item sold to not result in higher prices.
I am assuming that higher labor costs result in higher cost per item, because there is a limit to how much product one worker can produce (serve, etc.). This may not be true for every business but should be true for most.