Dependent Variable

A variable (often denoted by y) that is postulated to be determined by an independent variable (usually x). For example, the rate of consumption of a good (dependent variable) may be regarded as behaviourally determined by (amongst other things) its price (independent variable), or the marginal value placed on a good (dependent variable) may be regarded as being determined by (amongst other things) its rate of consumption (independent variable). See Demand Curve.

94 Depreciation Depreciation

The change in the value of a capital good over time, usually expressed annually. The value will typically fall as a result of wear and tear, supersession by other capital items, or through changes in fashion. When the value rises, the term is appreciation. The values in question are in constant prices: allowance for inflation is a separate matter.

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