According to Prospect Theory, Firms Are More Likely to Shrink

According to prospect theory, firms are more likely to shrink packages than raise prices because

A) consumers feel the loss of a price increase more than they feel the loss of buying a smaller package for their money.
B) they don't understand that consumers recognize price increases easily, regardless of what form they take.
C) consumers associate smaller packages with higher quality luxury goods.
D) consumers are generally trying to downsize their purchases and lead simpler lives.