Mex, a Restaurant, Makes All Its Menu Items from Scratch

Mex, a restaurant, makes all its menu items from scratch and uses authentic Mexican herbs in its dishes. As a result of its focus on using specialty ingredients, prices are 75 percent higher than its competitors. Mex knows that_____.

A) the higher the price, the better its perceived quality
B) people always pay more for items that are unfamiliar to them
C) people think that the competitor's food is priced too low
D) experience has taught consumers to ignore prices