Is the Critical Assumption When Using Target Profit Pricing

Multiple Choice

is the critical assumption when using target profit pricing?

A) a higher average price will usually cause the demand to fall
B) a higher average price will always cause the demand to fall
C) profit is relative to the current value of the dollar so this form of pricing is extremely risky
D) a higher average price will not cause the demand to fall
E) if the average price is increased, all of a firm's competitors will do the same