How do Prices Allocate Resources

i see where you're coming from, it's a gamble really. You set it at a 'reasonable' price that you know consumers will more likely buy at. The seller's will know that the demand is up b/c they see that consumers are buying more & more of the product. Then they'll hike up the price a little bit, if it's too much then the consumer will obviously go to another seller for the same product. I think I'm making sense, no?