Pretty Polly produces dresses for little girls. When Pretty Polly's manager sets the change in ________ profit equal to its marginal cost of advertising, Pretty Polly's ________ profit is maximized.

People who took out mortgages at the height of U.S. inflation in 1981:

A. paid much higher real interest rates than expected since inflation fell dramatically after 1981. B. paid much lower real interest rates than expected since inflation fell dramatically after 1981. C. paid much higher real interest rates than expected since inflation rose dramatically after 1981. D. paid much lower real interest rates than expected since inflation rose dramatically after 1981.

A decrease in supply results in a(n)

a. decrease in demand b. increase in equilibrium quantity and a decrease in equilibrium price c. decrease in equilibrium quantity and a decrease in equilibrium price d. increase in demand e. increase in equilibrium price and a decrease in equilibrium quantity