Asked by
Katie Lewis
on Oct 26, 2024
Verified
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.
Consumer Surplus
The variance between a consumer's willingness to pay for a service or product and the actual amount paid for it.
Cotton T-shirts
Garments made from the soft fibers of the cotton plant, noted for their comfort and breathability.
- Gain an understanding of consumer surplus and the effects of price fluctuations on it.
- Acquire knowledge about the determinants causing shifts in consumer surplus.
- Determine the impacts of external modifications, such as changes in harvesting or policy, on market surplus.
Verified Answer
HH
Learning Objectives
- Gain an understanding of consumer surplus and the effects of price fluctuations on it.
- Acquire knowledge about the determinants causing shifts in consumer surplus.
- Determine the impacts of external modifications, such as changes in harvesting or policy, on market surplus.