If the cost of fabric used to make bandanas decreases, it is true that the overall supply of bandanas will increase, leading to lower prices for consumers and potentially higher consumer surplus.

When the cost of fabric goes down, it becomes cheaper for manufacturers to make bandanas. Because it costs less to produce them, companies can supply more bandanas to the market. This increase in supply usually leads to lower prices, making bandanas more affordable for consumers. As the price drops, more people are likely to buy bandanas, which means they get a better deal than before, increasing their consumer surplus. For example, if bandanas that once cost $10 now only cost $7 due to lower fabric costs, more customers will be happy to buy them, enjoying the savings.