Crispies Inc., a player in the breakfast cereals market, sold 20,000 boxes of cereal in the first quarter of the year at a price of $5 per box. Market analysis, however, indicated that Crispies could sell 25,000 boxes in the next quarter if it lowered the price by $1 per box. The firm thus reduced the price to $4 in the second quarter to increase sales to 25,000 boxes. However, after this price reduction, the sales revenue of the firm began to decline long before it hit the target of 25,000 boxes.
Which of the following, if true, can best explain this outcome?