Rising Cotton Prices Have Forced Quilters to Switch from Fabric

question 227

Multiple Choice

Rising cotton prices have forced quilters to switch from fabric to linen. What happened to consumer surplus in the market for linen, assuming supply held steady and the market sells at the equilibrium price?

• A) Consumer surplus will remain unchanged after the increase in demand.
• B) Consumer surplus will be smaller after the increase in demand.
• C) Consumer surplus will be larger after the increase in demand.
• D) There is no way to predict whether consumer surplus will change.

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Definitions:

Systemic Discrimination

Systemic discrimination involves pervasive and institutionalized prejudices that disadvantage a particular group or groups across a society or organization.

Individual Situations

Unique circumstances or conditions experienced by a person, often influencing their decisions, behavior, and outcomes.

Ethical Standards

Principles that guide the behavior of individuals and organizations in conducting their activities in a morally right and fair manner.

Stock Prices

The market value per share at which a company's stock is bought or sold on the stock exchange.