- •The Interaction of Demand and Supply.Their Influence the Market Prices.
- •1. A. Think about the items youbought during the past twomonths.
- •2.Study key terms and their definitions.
- •3. To make the concept of demand clearer, entitle the following examplesof the main economic concepts concerning it. Answer the questions.
- •4. Match the terms with their definitions.
- •5.While reading the text match the questions to the answers.
- •Why is Demand Important?
- •Vocabulary practice
- •Find in the text English equivalents for the following word combinations. Write your own sentences using them.
- •Give Ukrainian equivalents for the following word combinations.
- •A. The italicized words in the sentences below are found in this unit. Study the sentences. Then identify the part of the speech and write your own definition for the words on the line provided.
- •IV. A. Study the difference between such nouns asamount, number and quantity.
- •In each set of words, cross out the words that does not have a similar meaning to the first. Compare your answers with another student. Discuss why the words are similar.
- •A. Expand your knowledge of non-price determinants of demand. Fill in the missing words in the sentences below. Choose from the box. Translate the sentences into Ukrainian.
- •Write one word in each gap to complete the sentences.
- •A. Read the text. Number the following words with their underlined equivalents in the text.
- •Read the following text. For each gap, choose the best words a, BorC.
- •Understanding main points of the text.
- •A. Which of these statements gives the best summary of the ideas in the text?
- •McMakeover Deluxe
- •B. Which of these statements gives the best summary of the ideas in the text?
- •Netflix, Blockbuster Battle It Out
- •Read the text and be ready to do the following assignments.
- •Scan the next article for the answers to the following questions:
- •Read the text written above. Title it and prepare a brief summary of the text.
UNIT 7
The Interaction of Demand and Supply.Their Influence the Market Prices.
Markets exist when buyers andsellers interact, and marketprices are set by the interactionof demand and supply.
LEARNING OBJECTIVES
After studying this unit, you should be able to:
examine topics and subtopics and predict content related to demand, supply and market price, microeconomics, market economy, demand and supply schedules and curves, Laws of Demand and Supply, marginal utility, changes in quantity demanded and quantity supplied, substitutes and complements, demand and supply elasticity, production, surplus and shortage;
apply reading skills to comprehend, analyze, and interpret texts related to the main microeconomics concepts such as demand, supply and prices(i.e. recognize main ideas in paragraphs, definitions, explanations, examples, classifications, comparisons and contrasts, sequence of events, cause / effect, pros and cons);
use strategies to reinforce comprehension skills (i.e. use graphic organizers to visualize connections between main ideas and supporting details, cite evidence for main ideas, answer literal and critical comprehension questions);
identify the main ideas, recall important details of a listening segment pertaining to demand, supply and price, take notes from spoken context as well as relate new information to previously acquired concepts;
give spontaneous and prepared monologs, dialogs, and group interaction using topical vocabulary;
summarize, annotate, render and translate texts related to the issues covered in the unit.
Lead-in
1. A. Think about the items youbought during the past twomonths.
What influenced yourpurchases?
Did you need theitems, or did you buy thembecause you wanted them?
Make a list of the items, andnext to each one write why youbought it. Then add for eachitem whether you would havebought more if the price hadbeen lower, or fewer had theprice been higher.
B.Read Unit 7 to learn how economistsinterpret your actions.
2.Study key terms and their definitions.
1. Demand – попит - combination of desire, ability, and willingness to buy a product.
Demand schedule-шкала попиту - a table that lists howmuch of a productconsumers will buy atall possible prices.
Demand curve – крива попиту -a curve that shows thequantities demandedat all possible prices.
Quantity demanded – величина попиту - amount of goods or services that are demanded at any given point in time; point on the demand curve.
Law of Demand– закон попиту - rule stating thatconsumers will buymore of a product atlower prices and less athigher prices.
Market demandcurve – ринкова крива попиту -a curve thatshows how much of aproduct all consumerswill buy at all possibleprices.
Marginal utility – гранична корисність -additional satisfactionor usefulness aconsumer gets fromhaving one more unitof a product.
Diminishingmarginal utility – спадна гранична корисність - decrease in satisfactionor usefulness fromhaving one more unitof the same product.
9. Change inquantitydemanded – зміна величини попиту -movement along thedemand curve showingthat the amountsomeone is willing topurchase changeswhen the price changes.
10. Change indemand – зміна попиту -shift of thedemand curve whenpeople buy differentamounts at every price.
11. Substitutes – товари-замінники -competing productsthat can be used inplace of one another.
12. Complements – товари-доповнювачі -products that increasethe use of otherproducts.
13. Elasticity – еластичність -a measure of responsiveness that tells us how adependent variable such as quantity responds to a change inan independent variable such as price
14. Demandelasticity – еластичність попиту -a measure that showshow a change inquantity demandedresponds to a changein price.
15. Elastic – еластичний -type of elasticity where the percentage change in theindependent variable (usually price) causes a more than proportionatechange in the dependent variable (usually quantitydemanded or supplied)
16. Inelastic – нееластичний -type of elasticity where the percentage change inthe independent variable (usually price) causes a less thanproportionate change in the dependent variable (usuallyquantity demanded or supplied)
17. Unit elastic - одинична еластичність -typeof elasticity where achange in price causesa proportional changein quantity demanded.