Assume that linen pants are a normal good and consumer income rises.If the supply of linen pants remains constant,producer surplus

Question

Quizplus · Accepted Answer

When consumer income rises and linen pants are a normal good, the demand for linen pants will increase, which will lead to an increase in the equilibrium price of linen pants. As a result, producer surplus will also increase because they are selling the same quantity at a higher price. Therefore, the correct answer is B.

Assume That Linen Pants Are a Normal Good and Consumer