Which scenario is most likely to INCREASE consumer surplus in the market for cotton T-shirts?
A)Weather provides for a bountiful cotton harvest.
B)Consumer incomes fall and cotton T-shirts are normal goods.
C)The price of polyester T-shirts falls.
D)The price of industrial sewing machines used to produce garments increases.

Question

Quizplus · Accepted Answer

A bountiful cotton harvest increases the supply of cotton, likely reducing the cost of cotton and, by extension, the cost of cotton T-shirts. This reduction in cost can lead to a decrease in the price of T-shirts for consumers, increasing consumer surplus as consumers can now get more for their money.

Which Scenario Is Most Likely to INCREASE Consumer Surplus in the Market