Jason,a High-School Student,mows Lawns for Families in His Neighbourhood

Multiple Choice

Jason,a high-school student,mows lawns for families in his neighbourhood.The going rate is $12 for each lawn-mowing service.Jason would like to charge $20 because he believes he has more experience mowing lawns than the many other teenagers who also offer the same service.If the market for lawn-mowing services is perfectly competitive,what would happen if Jason raised his price?

A) He would lose some but not all his customers.
B) Initially, his customers might complain but over time they would come to accept the new rate.
C) He would lose all his customers.
D) All others supplying the same service would also raise their prices.