The principle that can explain why a business will have problems if it tries to set prices too high in a well-established market is voluntary exchange.
In a free enterprise system, consumers have the choice to buy or not to buy products at the prices set by businesses. If a business sets its prices too high, consumers may choose not to purchase from that business and instead look for alternatives, resulting in a loss of sales and potentially driving the business into financial trouble. Voluntary exchange relies on the idea that both parties (buyers and sellers) agree on a price that they find acceptable; if that price is too high, the exchange will not occur.