2. Complete the table:

Which is not true about the law of demand:

Consumption is the key concept of microeconomics.

Classical economists contributed a lot to the development of the theory of demand.

Translate into Russian:

Much economic analysis focuses on the relation between prices and quantities demanded.

Marshall viewed demand in a cardinal context, in which utility could be quantified.

Consumption or demand is primarily, but not exclusively, a function of price.

With price on the vertical axis and quantity on the horizontal axis, the demand curve slopes downward from left to right.

A consumer buys more, not less of a commodity at higher prices when a negative income effect dominates over the substitution effect.

Innumerable studies of demand in actual markets having demonstrated the existence of downward- sloping demand curves.

Explain the difference and write one sentence with each:

sign — signify

list - page

quantity - quality

effect - effective

substitute — restitute

conspicuous — curious

Find antonyms to the following:

negative —

possible -

numerable —

vertical -

Think of examples of exceptions to the Law of Demand in the contemporary Russia. Write an essay of 100—150 words.

Questions for discussion:

Do you agree that «conspicuous consumption» plays the great role in the economy of Russia?

Do you think that the economic crisis and instant and immediate raise of prices in September 1998 in Russia was provoked by a) producers b) consumers c) whole­salers d) traders?

Do you think it is logical that «consumer responds to lower prices by buying more»? Think of an example when consumer believes that prices would go even lower and doesn’t react immediately in the expected way.