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V. Memorize the following word-combinations.Содержание книги
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Use them in the sentences of your own: demand and supply — попит і пропозиція demandfor consumer goods — попит на споживчі товари demand keeps pace with supply — попит не відстає від пропозиції demand outdistances supply — попит випереджує пропозицію demand outruns production — попит випереджує виробництво to be in demand — користуватися попитом to meet/to satisfy demand — задовольняти попит active/brisk/fair demand — жвавий попит actual demand — дійсний/фактичний попит aggregate demand — сукупний попит consumer/customer/consumptive demand — попит споживачів effective/effectual demand — ефективний попит VI. Translate the sentences paying attention to the italicized words: 1. Demand for fish has exceeded supply this month. 2. The demand for milk is inelastic because it is a necessity. 3. It is impossible to satisfy all their demands. 4. They demanded that the decision should be revised.
VII. Define which of the following items best completes the statement: 1. The demand for a good is elastic when a. total receipts increase with each decrease in price. b. total receipts decrease with each decrease in price. c. price changes have no effect upon total receipts. d. the demand curve shifts upward to the right. 2. What will happen in a competitive market if the quantity supplied is greater than the quantity demanded? a. consumers will demand more goods. b. suppliers will increase their output of goods. c. the market price will go down. d. the market price will go up.
3. As a result of an increase in price, total sales of a product increased by $1,000. The demand for the product was a. elastic. b. inelastic. c. diminishing. d. all of the above.
VIII. Complete the following sentences: 1. Most people think of demand as.... 2. Effective demand is.... 3. The Law of Demand says.... 4. In other words, if prices are high.... 5. For consumers price is.... 6. The demand for such products is such that.... 7. The inelastic demand means that.... 8. The portion of a person’s yearly budget that is spent on salt is so small that even if the price were to double, it.... IX. Answer the following questions: 1. What do most people think of demand? 2. What is an effective demand? 3. What does it help to do? 4. What is expressed by the Law of Demand? 5. What does the Law of Demand say? 6. The correlation between demand and price does not happen by chance, does it? 7. Is price an obstacle to buying for consumers? 8. What does the elastic demand consist in?
X. Translate into English: 1. Бiльшiсть людей уважає, що попит — це бажання мати певний економiчний продукт. 2. Таке бажання має бути поєднане зi здатнiстю та готовнiстю платити. 3. Взаємозалежність між попитом та ціною виражається законом попиту. 4. Він стверджує, що попит на економічний продукт змінюється обернено пропорцiйно відносно ціни. 5. Що вищі ціни, то менше буде продано товарів і послуг. 6. Завдяки вiдносно малому зниженню цiни споживачi купують набагато бiльше одиниць товару. READING DRILLS 1. Practise the pronunciation of the following words: a) stress the first syllable: indicate, seldom, finally, carefully, steeply, luxury, personal, preference, comfortable, offer, income, money, measure, value, scale; b) stress the second syllable: response, economist, particular, accordingly, commodity, relate, define, priority, essential, insurance, expense, result.
Text B Elasticity of supply1, as a response to changes in price, is related to demand. Economists define demand as a consumer’s desire or want, together with his willingness to pay for what he wants. We can say that demand is indicated by our willingness to offer money for particular goods or services. Money has no value in itself, but serves as a means of exchange2 between commodities which do have a value to us. People very seldom have everything they want. Usually we have to decide carefully how we spend our income. When we exercise our choice, we do so according to our personal scale of preferences. In this scale of preferences essential commodities come first (food, clothing, shelter, medical expenses etc.), then the kind of luxuries which help us to be comfortable (telephone, special furniture, insurance etc.), and finally those non-essentials which give us personal pleasure (holidays, parties, visits to theatres or concerts, chocolates etc.). They may all seem important but their true importance can be measured by deciding which we are prepared to live without. Our decisions indicate our scale of preferences and therefore our priorities. Elasticity of demand3 is a measure of the change in the quantity of
COMMENTS
1. elasticity of supply — еластичність пропозиції 2. means of exchange — засіб обміну 3. еlasticity of demand — еластичністьпопиту 4. basic necessity — предмет першої необхідності VOCABULARY EXERCISES I. Give the English equivalents for: eластичність пропозиції; еластичність попиту; зміни в ціні; бажання споживачів; пропонувати гроші; вартість; дохід; відносно дешеві речі; ціни різко зростають; певні товари та послуги; особиста шкала переваг; витрати на медичне обслуговування; засіб обміну; предмети першої необхідності; предмети розкоші; другорядні товари; страхування. II. Change the sentences in order to use the auxiliary verbs «do» Pattern: These goods and services have a value. These goods and services do have a value. The people went to the city to find work. The people did go to the city to find work. 1. These factors have an effect upon the economic system. 2. A change in government usually means a change in policy. 3. Stable conditions led to
III. Insert the article the or a(n): Pattern: There is... demand for steel.... demand for steel is increasing. There is a demand for steel. The demand for steel is increasing. 1. There is... shortage of bananas.... shortage of bananas will continue for some weeks. 2. There has been... change of government.... change in government will probably mean a change of policy.... change of policy may lead to... short period of instability.... short period of instability could create... feeling of insecurity. 3. The speaker suggested... special commission to study economic conditions. He said that... special commission should examine all aspects of national economic life.... commission should investigate... demands of... workers and... conditions under which they work. It should also hear... views of... employers. Such... commission would render... very valuable service to... nation. IV. Complete the following sentences: 1. Economists define demand.... 2. Money has no value in itself, but serves.... 3. When we exercise our choice.... 4. Our decisions indicate.... 5. Elasticity of demand is.... 6. Demand is inelastic when.... 7. We buy basic necessities even if....
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