What best describes the effect of new firms entering the industry?

A. The equilibrium price will fall

B. The profits of existing firms in the industry will increase

C. The industry supply curve will shift to the left

D. The industry supply curve will shift to the right and cause the equilibrium price to fall

Which of the following best describes a true, or pure, monopoly?

A. It is relatively easy for other firms to overcome barriers of entry

B. The market consists of many different sellers of the product

C. Many close substitutes are available

D. The firm and the industry are the same

If the government made a new law banning the sale of gasoline, which of the following statements would be true for the gasoline market?

A. It would increase consumer surplus

B. It would create a more efficient market

C. It would increase producer surplus

D. It would increase total surplus