Bakery ABC sells donuts and needs premium flour to produce. Supermarket 123 is the only seller of premium flour in town. If the supermarket raises the price of premium flour from $15 to $30 per pound, what level of power of input supply does the supermarket have on the bakery and how will revenues be affected?
a. high degree of power, higher revenues for the bakery
b. high degree of power, lower revenues for the bakery
c. low degree of power, lower revenues for the bakery
d. low degree of power, higher revenues for the bakery