Price Elasticity of Demand and Supply

There is a relationship between demand and price. How much demand for a commodity is affected by a change in price is called elasticity of demand. If a small change of price results in a large change in demand. The demand is called elastic, if the demand changes only a little it is called inelastic. The price elasticity of supply shows the percentage change in quantity supplied resulting from 1 percent change in price.

As an increase in quantity supplied is normally a result of a rise in price, the coefficient is usually positive. We have a “0” (zero) elasticity when a price change results in no quantity supplied change. This is called a perfectly inelastic supply. Provided the elasticities vary between zero and one the supply is called inelastic. With coefficients greater than one the supply is called elastic. The percentage change in quantity is larger than the corresponding percentage change in price.

Agricultural supply is mostly inelastic because of the high proportion of such inputs as land, buildings and machinery. The elasticities of agricultural commodities (potatoes, wheat, fruits, eggs, milk) vary greatly because of increasing specialization of production of farm animal products, in particular, elasticities for such commodities as pigs or broilers have decreased in recent years.

VIII. Задайте к тексту 5 специальных вопросов, 5 общих вопросов, 3 альтернативных вопроса и 3 разделительных вопроса.

IX. Ответьте на следующие вопросы к тексту.

1. Which demand is called elastic?

2. In what units is elasticity of supply shown?

3. Why is price elasticity of demand coefficient negative and the corresponding coefficient for supply positive?

4. What supply is called inelastic?

5. What is the difference between the inelastic and the perfectly inelastic supply?

6. Why is agricultural supply usually inelastic?

7. What is the tendency of agricultural supply development?

X. Составьте рассказ о себе, обращая внимание на следующие вопросы.

1. What is your name?

2. How old are you?

3. What are you? What is your profession?

4. Do you like your job or not? Why?

5. Is your office at the centre of the city?

6. What are your hobbies or special interests?

КОНТРОЛЬНАЯ РАБОТА №2

Вариант 1

Для того чтобы правильно выполнить контрольную работу, необходимо усвоить следующие разделы курса:

1. Модальные глаголы и их эквиваленты.

2. Времена группы Continuous (Present, Past, Future)

3. Основные формы глагола (правильные, неправильные).

4. Употребление much/many, few/little.

 

I. Заполните пропуски подходящими по смыслу модальными глаголами или их эквивалентами.

1. People mustn’t ______ lessons of history.
a) forget b) to forget

2. Peter and Mike ______ work overtime this month.
a) have to b) has to

3. She ______ look after her little sister.
a) has to b) have to c) haves to

4. My father ______ promotion next month.
a) mights get b) might gets c) might get

5. The children ______ go to bed in time.
a) is to b) are to

6. They ______ finish the work tomorrow.
a) don’t may b) don’t may to c) may not d) may not to

7. So, what ______ come out of this?
a) will may b) may

8. We’ve got plenty of time. We _____ hurry.
a) need not b) cannot c) must not

9. That’s a secret. You ___ tell anybody.
a) may not b) need not c) cannot

10. I can go on my own. You _____ come with me.
a) may not b) cannot c) need not

II. Раскройте скобки, обращая внимание на образование времен группы Continuous (Present, Past, Future).

1. Be quite, please. I (to try) to write a report.

2. Listen to those people. What language they (to speak)?

3. We (to held) negotiations, when the secretary brought coffee.

4. The company (to launch) new product during all last month.

5. Don’t come to my place tomorrow. I (to write) a report.

6. During the course you (to learn) about market research strategies.

III. Образуйте форму прошедшего времени в следующих глаголах.

To be, to keep, to held, to fill, to develop, to find, to keep, to translate, to work, to hear, to discuss, to load, to launch.