Which of the following 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 would likely increase the supply of cotton, leading to a decrease in the price of cotton T-shirts, which would increase consumer surplus as consumers can purchase more at a lower price.

Which of the Following Is Most Likely to INCREASE Consumer