When the Price of Cotton Has Risen 12 Percent, the Misperception

Multiple Choice

When the price of cotton has risen 12 percent, the misperception effect could lead cotton producers to increase their output when they otherwise would not, if overall prices:

A) have been stable
B) have risen 4 percent.
C) have risen 12 percent.
D) have risen 20 percent.
E) have risen either 12 percent or 20 percent.