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

question 107

Multiple Choice

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.

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Definitions:

Restraints of Trade

Activities or factors that limit or obstruct the free trade and competition between businesses within a market.

Tying Contract

A requirement imposed by a seller that a buyer purchase another (or other) of its products as a condition for buying a desired product; a practice forbidden by the Clayton Act.

Sales Product

A good or service offered for sale by a business to customers in a market.