Defensive expenditure method is based on the understanding that

A. the consumer spends money to ameliorate the damaging effects of the bad.

B. the defensive expenditure undertaken reflects the consumer's willingness to pay to reduce the level of the bad.

C. the observed defensive expenditure is an upper bound on the willingness to pay to avoid the bad.

D. the defensive expenditure provide no additional services other than provisioning the desired environmental quality.

E. the observed defensive expenditure is a lower bound on the willingness to pay to avoid the bad.

Choose the correct answer from the option given below: