I would say B is debatable in all cases considering you'd have to factor in the costs of ebook medium, and the fact that there is a real argument that agreeing to publisher's licensing/DRM scheme can be trivially argued to be an unreasonable price.

Throw in the constraints arising from social distancing strongly disfavoring physical purchasing, and it sounds to me like the industry is simply refusing to adapt to the times.

If people will not purchase your book at the price you set it at, I'd argue that it isn't a reasonable price. Further, if you invest large amounts of capital into technological infrastructure to thwart free dissemination of digital content, and people decide not to aid you by recouping your investment through purchases, I'd consider that the Invisible Hand at work.

The publishing industry is less a disseminate anymore, but more an IP speculator. I file them with patent trolls at this point.