(random thoughts sorry)
In reference to price-gouging, Bernie Sanders say drug companies raise price to "what the market will bear."
At a certain point, people will stop paying higher prices and other priorities for spending are put ahead of the new high price. Sanders want to move drug prices down to what people can afford.
Inflation as it relates to demand, businesses will raise price if they can or if they must. If there is more demand at a certain income, business will supply good and services at prices that the consumer will pay and business can survive on.
In the 50s and 60s teens had more money so they could spend on music or comics and this allowed artists to have careers.
cost push demand pull