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.
Correct Answer:
Verified
Correct Answer:
Verified
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