That's true. But things of basic necessity like water and food shouldn't be handed over to market forces. Prices will skyrocket for things with inelastic demand.

We have a concept of MRP (Maximum Retail Price) in our country. Charging higher than that is illegal and any consumer can sue them in a Consumer Protection Court with just a receipt. But sadly, still businesses do charge higher illegally. So in upmarket places, the concept of "what the market can bear" is applied for pricing instead of what is reasonable or fair.