Simple example: Pizza delivery service. The company runs very well, customers are happy, demand increases. At some point the demand gets so high, that they need to buy a second car for deliveries and a second pizza oven.

They look at the numbers and see the risk of making less profit than before, if they expand. Especially if demand decreases at some point, instead of growing further. So they decide to just raise the prices, lower demand and make even more money without additional risk.