My company sells high-end water filtration pitchers. We have one model that sells for $69.99 and a higher quality model that sells for $89.99. My closest competitor introduces a product similar to my best model for $109.99. With the information provided here and your knowledge about reference points, what is most likely to happen?
A. Sales of my $69.99 model will increase the most
B. Consumers will decide that my $89.99 model is inferior to all other models.
C. Sales of my competitor's $109.99 model will be very strong
D. Consumers' willingness-to-pay for my $89.99 model will become $109.99
E. Sales of my $89.99 model will increase the most
Answer: E. Sales of my $89.99 model will increase the most