If everyone is being hit by the same cost issues, small VPS hosts just need to charge more to operate the same. Most small VPS hosts are dirt cheap and I don't think many people would be shocked if prices go up in this environment.
Yes, even if prices would triple, VPSs would still be an attractive offering.
At a certain price people choose not to buy
Yes, even if prices would triple, VPSs would still be an attractive offering.