Arrange the following steps in the correct order to understand the impact of decreased input costs on the supply of bandanas in the market: A) Consumers notice lower prices and increase demand for bandanas. B) Producers experience lower production costs and increase supply of bandanas. C) The market reaches a new equilibrium with a higher quantity of bandanas sold. D) The consumer surplus increases due to the lower prices and higher quantity available.

To understand how decreased input costs affect the supply of bandanas, we start with producers experiencing lower production costs, which leads them to increase the supply of bandanas. As the supply increases, this often results in lower prices for consumers. When consumers notice these lower prices, they tend to buy more bandanas, increasing the demand. Eventually, the market reaches a new equilibrium where more bandanas are sold at these lower prices, leading to an increase in consumer surplus because they are getting more value for their money. For example, if the cost of fabric decreases, producers can make more bandanas for less money, leading to lower prices and more sales.