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.

Question

Quizplus · Accepted Answer

When new gaming systems enter the market, they will create more substitute products for the Nintendo console. This will make consumers more sensitive to changes in the price of the Nintendo console, making the demand for it more price elastic. The availability of substitutes will give consumers more options, and they will be more likely to switch to a different product if the price of the Nintendo console becomes too high.

The Introduction of New Gaming Systems That Can Compete Effectively