[westward]

Is the price of something determined by how much it costs to make or how much someone is willing to pay for it? I believe the correct answer is "It depends and both".

If you think it's just cost+profit then, prices will rise only by the percentage of which labor is a part of that price. In the restaurant industry, for example, labor costs are about 35% or the total costs. If wages increase 10%, costs increase 3%.