CHAPTER THREE
SUPPLY, DEMAND AND MARKET PRICE
UNIT ONE
What? How? Who?
Prices in a Market Economy? Demand Elasticity of Demand
ESSENTIAL VOCABULARY
Allowance n. – a sum of money given to a person regularly or from time to time for a special purpose – грошова допомога, компенсація, доход, кишенькові гроші. Family allowance – допомога багатодітним сім’ям, living allowance – засоби на прожиття, стипендія, subsistence allowance – допомога, що забезпечує тільки прожитковий мінімум.
Complementary adj. – serving to complete, perfect, or make up a whole – додатковий. Complementary goods - додаткові товари. Syn. complements.
Delay v. – to put off until another time – відкладати, затримувати, баритися, відстрочувати. To delay payment - відкладати/затримувати платіж, to delay a purchase – відкладати покупку. Syn. to postpone, to defer.
Diminish v. – to become less – зменшуватись, убувати. Diminishing marginal utility – гранична спадна корисність. To diminish in bulk - зменшуватися в обсязі. Syn. to decline, to decrease, to lessen.
Do without v. – to manage without – обходитись. To do without any help – обходитися без сторонньої допомоги.
Estimate v. - to make a rough calculation - оцінювати, підраховувати приблизно. Syn. to calculate, to compute, to count.
Look to v. – to rely on something – покладатися, розраховувати.
Motivate v. – to provide with an incentive or motive – спонукати, мотивувати. Syn. to encourage, to favor, to stimulate.
Necessities n. – things needed to support life – товари першої необхідності. Syn. essential goods, essentials.
Shift n. – a change in position, place, direction, or condition – зміна, переміщення. Shift in demand - зміна у попиті. Syn. change.
Substitute n. – a thing that replaces, or can be used in place of, something else – замінник, субститут. Substitute goods – товари-замінники. Syn. substitutes.
Substitute something for v. – to put in the place of another thing – замінювати.
Usefulness n. - a state or quality of being useful – корисність. Syn. utility.
Exercise 1
Read, translate into Ukrainian in written form and learn by heart the definitions of the following economic terms and concepts.
Demand: a consumer’s willingness and ability to buy a product or service at a particular time and place.
Demand curve: the graphic representation of demand.
Demand schedule: a table showing the quantities of a product that would be purchased at various prices at a given time.
Diminishing marginal utility: the last item consumed will be less satisfying than the one before.
Elastic demand: a small change in price results in a large change in demand.
Elasticity of demand: measure of buyers’ eagerness to acquire a good or service.
Inelastic demand: a large change in price leads to only a small change in demand.
Law of demand: demand for a product varies inversely with its price.
Exercise 2
Give the Ukrainian equivalents for the following.
The rationing effect of prices, to offer for sale, to attract additional producers, potential suppliers, consumer’s willingness and ability, to afford, to sell at a lower (higher) price, to conduct a survey, at various prices at a given time, to substitute one item for another, to apply to most everything, to increase the quantity demanded, to give something away, a demand curve, the shape and slop of demand curves, to be sensitive to changes in price, to do without something, elasticity of demand, total revenue, necessities, complementary goods, to have an increase or decrease in demand, to result in a shift in the demand for a substitute, to shift in, item’s usefulness, allowance, availability of complementary goods.