Use the Information Below to Answer the Following Questions

Multiple Choice

Use the information below to answer the following questions.
Fact 13.3.2
Suppose that Tommy Hilfiger's marginal cost of a jacket is $100 (a constant marginal cost) and at one of the firm's shops,total fixed cost is $2,000 a day.The profit-maximizing number of jackets sold in this shop is 20 a day.Then the shops nearby start to advertise their jackets.The Tommy Hilfiger shop now spends $2,000 a day advertising its jackets,and its profit-maximizing number of jackets sold jumps to 50 a day.
-Refer to Fact.13.3.2.If advertising decreases demand and makes demand more elastic,the price of a Tommy Hilfiger jacket ________.If advertising increases demand and makes demand less elastic,the price of a Tommy Hilfiger jacket ________.

A) falls;does not change
B) rises;falls
C) falls;rises
D) rises;does not change
E) does not change;does not change