For Consumers,computers Are a Complement to Computer Software

question 230

Essay

For consumers,computers are a complement to computer software.Suppose the price of a computer falls.Simultaneously,suppose that the number of companies selling computer software decreases.How do these changes affect the price and quantity of computer software?

---

Definitions:

Prior Period Adjustment

Adjustments made to the financial statements of a prior period to correct errors or implement changes in accounting policy.

Retained Earnings Account

An equity account on the balance sheet that represents the accumulated net earnings not distributed to shareholders in the form of dividends.

Net Income

The final income of a company, achieved by subtracting expenses and taxes from the total revenues.

Income Tax Expense

The expense incurred by individuals or corporations due to taxable income, recognized in financial statements.