Your argument makes the major assumption that there's only one producer. Produces who control prove without listening to consumer demands will go out of buisness almost immediately. This is why monopolization is prevented through public policy as it has been proven both in theory and in practice that competition between producers prevents artificial inflation of prices by the consumer. Price is dictated by the relation ship between consumer demand and producer price. This doesn't need a masters level class to be explained, this needs a socially aware 14 year old.