Final answer:
A failure of the lemon crop causes a decrease in supply, leading to higher prices and a reduction of consumer surplus in the lemon market.
Step-by-step explanation:
The failure of the lemon crop would lead to a decrease in supply. This reduction in supply would increase prices and reduce the quantity of lemons available in the market.
Given that consumer surplus is the difference between what consumers are willing to pay and what they actually pay, a higher price because of the supply shock would reduce consumer surplus in the lemon market.
Consumers would now be able to purchase fewer lemons than before at higher prices. Hence, the area representing consumer surplus in a supply and demand graph would shrink, reflecting the reduction in surplus. Producers might gain surplus in the short term due to higher prices, but the overall consumer surplus would certainly decrease.