Demand and Supply

Demand is the quantity of a good that buyers wish to buy at each price¹. Other things equal², at low prices the demanded quantity is higher.

Supply is the quantity of a good that sellers wish to sell at each price. Oth­er things equal, when prices are high, the supplied quantity is high as well.

The market is in equilibrium when the price regulates the quantity supplied by producers and the quantity demanded by consumers. When prices are not so high as the equilibrium price, there is excess demand (shortage) raising the price. At prices above the equilibrium price, there is excess supply (surplus) reducing the price.

There are some factors influencing demand for a good, such as the prices of other goods, consumer incomes and some others.

An increase in the price of a substitute good (or a decrease in the price of a complement good) will at the same time raise the demanded quantity.

As consumer income is increased, demand for a normal good will also increase but demand for an inferior good will decrease. A normal good is a good for which demand increases when incomes rise. An inferior good is a good for which demand falls when incomes rise.

As to supply, some factors are assumed as constant. Among them are tech­nology, the input price, as well as degree of government regulation. An im­provement in technology is as important for increasing the supplied quantity of a good as a reduction in input prices.

Government regulates demand and supply, imposing ceiling prices (max­imum prices) and floor prices (minimum prices) and adding its own demand to the demand of the private sector.

Задание 2. Выпишите из каждого предложения текста грамматическую основу (подлежащее+ сказуемое), определите видовременную форму глагола и залог, определите начальную форму глагола.

Задание 3. Задайте вопросы к первому предложению:

· общий

· специальный

· к подлежащему

· альтернативный

разделительный

Задание 4.. Заполните пропуски в предложениях следующими словами и переведите пред­ложения на русский язык: Production, Income, Restrictions, Technology, Industry, Consumers

1. In East-European countries … couldn't get goods, and facto­ries couldn't buy inputs at prices held low by governments.

2. Governments intervene in economies controlling the supply of money, limiting monopolies and helping private ….

3. An improvement in … will increase the supply of a good, in­creasing the quantity supplied at each possible price.

4. Governments regulate economic activities imposing some ….

5. The governments can influence for whom goods are produced, taking … away from some people and giving it to others.

6. The high price for a good is the market mechanism telling suppliers it is now time to increase ….

Задание 5. Найдите в тексте неличные формы глаголов (герундий, причастие настоящего времени, причастие прошедшего времени, отглагольное существительное, инфинитив, сложное подлежащее, сложное дополнение) и выпишите их.

ВАРИАНТ 3

1. Прочитайте и переведите письменно текст на русский язык.