The owner’s plan – to lower prices to attract customers – assumes that some customers will choose the lower price (choice A), that the quality of Morning Glory’s products is comparable to its competitor (choice B), that Morning Glory can afford to offer lower prices (choice C), and that its competitor will also not lower its prices (choice E). The plan does not rest on any assumptions about the loyalty of Morning Glory customers (choice D). Indeed, there is evidence that the customers are not loyal, because Morning Glory has already lost 50% of its business.