lets say only you and 3 other companies offer a certain service or product in your area. all four companies are friends and help each other out in emergencies and so forth. you and other three companies get together and decide to set a minimum charge for your product or service that is higher than anyone else in country charges. you each can charge even more if youd like, but none of you will go below that fixed minimum. service or product is in high demand and no one else offers it in area, so customers pay the unusually high price for it without much complaint. is anything wrong with this type of business strategy or is it pure supply and demand economics. the service or product is considered a luxury, and customers are rich, so no gouging of old ladies on medicine is taking place.