The Introduction of New Gaming Systems That Can Compete Effectively

question 172

Multiple Choice

The introduction of new gaming systems that can compete effectively with the Nintendo console will make the demand for the Nintendo console become

• A) more price elastic.
• B) more price inelastic.
• C) perfectly price elastic.
• D) perfectly price inelastic.
• E) unchanged.

---

Definitions:

Salaries Expense

The total amount paid to employees for services rendered during a specific period, recorded as an expense on the income statement.

Supplies

Materials and items consumed or used in the operation of a business or manufacturing process that are not part of the final product.

Unearned Rent

Income received by a company for rent that has not yet been earned because the rental period has not occurred.

Prepaid Rent

An expense that has been paid in advance for the use of a property, recognized as an asset until the rental period occurs.