If the cost of fabric decreases and bandanas are a normal good, what happens to the supply of bandanas and consumer surplus?

When the cost of fabric decreases, it becomes cheaper for manufacturers to produce bandanas. Since bandanas are considered a normal good, the lower production costs encourage suppliers to make more bandanas available in the market. This increase in supply can lead to a lower price for bandanas, which makes them more affordable for consumers. As a result, consumer surplus, which is the benefit that consumers receive when they pay less than what they are willing to pay, increases. For example, if a bandana originally costs $10 and drops to $7 due to lower fabric costs, consumers who were willing to pay $10 now save $3, enhancing their overall satisfaction.