If new manufacturers enter the computer industry, then (ceteris paribus):

Question

Quizplus · Accepted Answer

When new manufacturers enter the computer industry, the supply of computers increases, leading to a rightward shift in the supply curve. This can lead to a decrease in the equilibrium price of computers, as there are now more suppliers offering computers, resulting in an increase in competition. However, it does not necessarily require any established manufacturers to exit the industry, as there may still be demand for their products.

If New Manufacturers Enter the Computer Industry, Then (Ceteris Paribus)