Assignments

I. Suggest the Russian equivalents

Влияние цены и дохода на спрос, нисходящий уклон спроса, колебания кривой спроса

II. Replace the parts in italics by synonyms

A trivial cut, a negligible effect, to take account of the market size, presumably/apparently/perhaps/plausibly, an explicit warning.

III. Fill in the gaps with the words and expressions from the text

1How should we measure the responsiveness of the quantity of tickets demanded to the price of tickets?

2. clearly, 1 pound is a trivial cut in the price of a car and will have a negligible effect on the quantity of cars demanded.

3. it is not the absolute number of cars or tickets we should examine, but the percentage change in quantity demanded.

4.The price elasticity of demand is the percentage change in the quantity of a good demanded divided by the corresponding percentage change in its price.

5. The price elasticity of demand tells us about movements along a demand curve and the demand elasticity must be a negative number

6. For further brevity, economists sometimes omit the minus sign.

IV. Shorten the following sentences without changing their meaning, like this: Nobody likes prices, which are constantly rising. Nobody likes constantly rising prices.

• the downward slope of the demand curve

• John works very hard

Our policy must fix prices better

• Rising interest rates will damp down demand.

• Rapidly expanding economy can get out of control

• We shall look at the information, corresponding to this in tabular form.

V. Find in the text English equivalents for the following

кривая спроса; реакция на...; при прочих равных условиях; товар, предмет потребления; снижение цены на 1 процент; процентное изменение в количественном показателе спроса; эластичность спроса в зависимости от изменения цены; измерить гибкость реакции на...; положительное (плюсовое) процентное изменение;, негативное (минусовое) процентное изменение

V. Find in the text English equivalents for the following

The demand curve; the responsiveness of; other things equal; a good; a commodity; a price cut of 1 pound; the percentage change in quantity demanded; the price elasticity of demand; to measure responsiveness to; a positive percentage change; a negative percentage change.

VI. Answer the questions

1. What does the downward slope of the demand curve show?

2. Give the definition of the price elasticity of demand. Explain it in your own words.

3. Name the three types of the demand elasticity as mentioned above.

4. Explain in your own words how to calculate demand elasticity.

5. Explain why economists sometimes omit the minus sign and how negative and positive numbers should be distinguished.

VI. Answer the questions

1. The downward slope of the demand curve shows that quantity demanded increases as the price of a good falls;

2. The price elasticity of demand is the percentage change in the quantity of a good demanded divided by the corresponding percentage change in its price. Price elasticity of demand (PED or Ed) is a measure used in economics to show the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price. More precisely, it gives the percentage change in quantity demanded in response to a one percent change in price;

3. The cross price elasticity, the income elasticity, the price elasticity of demand;

4. We should divide the percentage change in the quantity of a good demanded by the corresponding percentage in its price;

5. Economists sometimes omit the minus sign, since it is easier to say the demand elasticity is 2 than to say it is -2. Whenever the price elasticity of demand is expressed as a positive number, it should be understood (unless there is an explicit warning to the contrary) that a minus sign should be added. Otherwise, we should be implying that demand curves slope upwards, which is rare but possible.