2.Say whether these statements true (t) or false (f), and if they are false say why.

1. ( ) In the majority of systems prices are fixed but in the minority it is possible to bargain.

2. ( ) We know that a consumer’s satisfaction is greater than his financial sacrifice if he goes on buying a commodity at the current price.

3. ( ) When a consumer becomes dissatisfied at paying the current price, he pays less.

4. ( ) The financial sacrifice becomes too great when the quality of the commodity gets worse.

5. ( ) The consumer will probably buy more if the price falls.

6. ( ) If the price rises, the consumer will probably buy less.

7. ( ) If the price remains the same, the consumer will reach a point when his sacrifice is greater than his satisfaction.

8. ( ) ‘The Law of Diminishing Marginal Utility’ is the name which economists give to the tendency for a consumer’s desire to diminish as he buys more units.

3. Answer the following questions:

1. Prices are fixed in most economic systems, but what is possible in some systems?

2. What is the individual generally unable to change?

3. Under what conditions will a consumer go on buying a commodity?

4. What does the consumer show by buying more bananas?

5. What happens with each successive purchase?

6. At what point will the consumer stop buying the commodity at the current price?

7. What does a consumer’s desire tend to?

4. Look through the text again and give Ukrainian/Russian equivalents to the following English words and word combinations:

In advance, financial sacrifice, fixed prices, successive purchase, in general terms, the loss of money, the Law of Diminishing Marginal Utility, it is clear, remains the same, the nature of a commodity.

5. Give English equivalents to the following words and word combinations from the text:

Зменшуватися; не краще, не гірше; бажання споживача придбати товар; з одного боку; приймати ціни; з іншого боку; продовжувати купувати; споживач; плануючи витрати; за короткий час; встановлювати ціни; однак; компенсувати споживачу щ-н.

6. Supply the missing prepositions where necessary:

1. If you do something … advance you do it before a particular date or event.

2. … peacetime bombs are not in very great demand. … wartime their utility is very high.

3. Consumer’s willingness to buy a commodity is often higher than his dislike … losing money.

4. People buy essential commodities … current prices. They cannot change them.

5. The Law of Diminishing Marginal Utility characterizes a special relationship … a commodity and a consumer.

6. …general terms, the higher the price is the fewer the consumer will buy.

7. The consumer’s desire…a commodity depends very much…its stock.

8. He always bargains … prices in shops … to get a discount.

7. Match an adjective from column a with noun/nouns from column b. Then make a sentence for each word partnership.

A B

current	utility
financial	purchase
marginal	terms
successive	nations
different	wants
maritime	sacrifice
individual	price
general	ways