(Answered) c. Cotton producers begin using a higher-yielding seed variety.c. Cotton producers begin using a…

➤ How does using higher-yielding seeds affect producer and consumer surplus?
Higher yields lower market price and raise quantity. Consumer surplus grows because buyers pay less and get more cotton. Producer surplus can increase if cost reductions per unit exceed the price drop, but it can fall for some producers if price falls faster than their cost savings. Total welfare normally rises due to efficiency gains.