[Harvey-Specter]

I would guess that roofing services have inelastic demand, meaning that a change in price doesn't affect demand much. A home owner often doesn't have much choice about whether or not to repair their roof, if it needs to be done then it needs to be done.

[scott00]

If that were true, it would mean that a roofer would need to raise prices a great deal in order to reduce demand a small amount. In such circumstances, it would probably be very profitable for a roofer to increase prices. The opposite (roofing has very elastic demand) is probably more likely. Under elastic demand, a small increase in prices would lead to a large decrease in demand. Under those circumstances, a roofer may prefer the certainty of 100% utilization at a slightly below market rate to having to struggle for contracts at the market rate.

[srtjstjsj]

That's only true if the supply side of the market is non competitive.