Economics CH5

5. a decrease in the value of a capital good because of its age, use, or deterioration.
9. the graph depicting the relationship between the price of a certain commodity and the amount of it that consumers are willing and able to purchase at any given price
10. the total amount of money that a company receives from selling its product, not before expenses
11. a rule that a government establishes and enforces to protect the public or provide equal access to specific goods and services
15. an effect that an economic activity has on people and business who are neither producers nor consumers of the good or service being produced
18. a situation in which the quantity demanded is more than the quantity supplied
19. a government regulation that sets a minimum price for a good

1. a business that another company either owns or in which it has controlling interest
2. a situation in which the quantity supplied of an item at a given price exceeds the quantity demanded
3. the situation that exists when quantity demanded changes greatly in response to change in price
4. any item that a supplier manufactures for consumers
6. the sum of a business’s fixed costs except for wages and materials
7. the effect that a change in an items price has on consumers ability to purchase goods
8. desire and willingness to pay a price for a specific good or service.
12. a required payment to a local state or national government
13. a government regulation that sets a maximum price for a particular good
14. the principle that producers will supply more of a product at higher prices and less of a product at lower prices
16. a cost of doing business that remains constant as production increases or decreases
17. difference between the revenue received from the sale of an output and the opportunity cost of the inputs used