You Live in a Mixed Economy and Currently Produce Granola

Multiple Choice

You live in a mixed economy and currently produce granola bars that are organic and non-GMO. As a result, consumers are willing to pay more for your product for others on the market. Based on the concept of supply and demand, how is this likely to affect your production planning?

A) You will leave production unchanged, but upgrade your packaging to differentiate from your competitors.
B) You will decrease production and hope the increased pricing allows you to cover costs.
C) You will increase production to take advantage of the higher prices.
D) You will decrease production, but also minimize costs of production to compete in this industry of perfect (or pure) competition.