What Is the Critical Assumption When Using Target Profit Pricing

What 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 a firm's competitors will do the same.

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