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:

Harry Markowitz

An American economist known for his pioneering work in modern portfolio theory, emphasizing diversification and risk management in investing.

Interest-Rate Sensitivity

A measure of how much the value of an investment or a portfolio will change in response to a change in interest rates.

Bond Prices

The cost at which a bond is trading, which can fluctuate based on interest rates, the bond's credit quality, and other factors.

Coupon Rate

The per annum interest rate of a bond, depicted as a percentage of its principal amount.