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

• A. the equilibrium price of computers will rise
• B. the quantity supplied of computers will decrease
• C. the market supply of computers will increase
• D. the market demand for computers will decrease

Answer: (C)

Verified step by step guidance

1. Understand the concept of market supply: Market supply is the total quantity of a good that all producers in the market are willing and able to sell at different prices.
2. Recognize that when new manufacturers enter the industry, the number of producers increases, which means more producers are willing to supply computers at each price level.
3. Since more producers are supplying computers, the overall market supply curve shifts to the right, indicating an increase in supply.
4. Recall that ceteris paribus means 'all other things being equal,' so demand remains unchanged in this scenario.
5. Conclude that with an increase in the number of manufacturers, the market supply of computers increases, which is why the correct answer is 'the market supply of computers will increase.'