Looking to increase the profits of his lemonade stand, Johann doubled the price of a cup of lemonade from 25 cents to 50 cents. This clearly shows Johann’s lack of business sense, for now he’ll almost certainly sell fewer cups at the new price and therefore make less money than before.
The argument above assumes that:
A. even if Johann sells more cups at the new price than he did at the old price, he’ll still lose money on the lemonade stand.
B. profits from the price increase will not offset the money lost when fewer cups are sold.
C. the price increase will likely put Johann out of business.
D. Johann is looking to double the profits of his lemonade stand.