english_kunat

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V. Define which of the following items best completes the statement:

1.Dema n d cu rves

a.show that consumers are willing to buy more at lower prices.

b.are the same for all goods and services.

c.match the price of a good with the amount supplied.

d.are statistical charts prepared by a government agency.

2. A typ ica l d ema n d cu rve

a.slopes downward from left to right.

b.slopes downward from right to left.

c.is usually a straight line.

d.is always a curved line.

a.complementary goods.

b.luxuries.

c.goods with substitutes.

d.necessities.

VI. Say whether these statements are true or false and if they are false say why:

1. In economic theory, demand means the amount of a commodity or service that economic units are willing to buy. 2. In economic theory demand is always effective demand. 3. Demand is only influenced by price. 4. Effective demand is always supported by merely the desire for a particular commodity

or service. 5. In economic analysis, the incomes of the demanders and the prices of substitutes are frequently assumed to be constant. 6. The demand curve tells us how many units of a particular commodity or service would be sold at various prices. 7. The demand curve normally means that more is bought at low prices than at high prices.

VII. Complete the following sentences:

1. In economic theory, demand means ... . 2. In economics demand is always effective demand, i.e., ... . 3. Demand is not only influenced by price

... . 4. In economic analysis, these other factors are ... . 5. The demand curve is ... . 6. It tells us ... . 7. The demand curve normally slopes ... .

VIII. Answer the following questions:

1. What does « demand» mean in economic theory? 2. What is effective demand? 3. What factors is demand influenced by? 4. What is demand function? 5. What does the demand curve tell us? 6. At what price is more bought? 7. What is a famous exception to the rule of a downward-sloping demand curve? 8. When will the whole demand curve shift its position?

IX. Retell the text C using the following words and word-combinations:

at a given price; effective demand; desire for a particular commodity or service; the prices of substitutes; quantity demanded; to graph the relationship in the demand curve; demand, supported by purchasing power; the incomes of the demanders; the graphical representation of the demand function; particular commodity or service; relationship between price and demand; at higher prices; at low prices; a downward-sloping demand curve; Giffen paradox.

GRAMMAR EXERCISES

The Passive Voice. Indefinite Tenses

I. Make the following sentences interrogative and negative:

1.The film is much spoken about. 2. These books are sold everywhere.

3.I am paid twice a month. 4. The shop will be closed at 8 o’clock. 5. John was taught French at school. 6. They were invited to the party. 7. Service is included in the bill.

II. Give short and full answers:

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1. Are foreign languages taught at our University? 2. Are all the students supplied with textbooks? 3. Is a large number of questions asked and answered at the English lesson? 4. Are all the exercises checked up in class? 5. Will your next dictation be written much better? 6. Are computers widely applied at our University?

III. Answer the following questions:

1. When was our University founded? 2. When was it given the status of National Economic University? 3. What subjects are taught at our University? 4. What languages are spoken in Ukraine? 5. What foreign languages are taught at our University? 6. Where is English spoken? 7. Where is Ukraine situated? 8. What industries are developed in Ukraine?

IV. Put questions to the italicized words:

V. Complete the disjunctive questions:

1. The news will be announced after dinner, ... ? 2. The documents will not be given back in time, ... ? 3. The exercises were done orally, ... ? 4. You are criticized a lot, ... ? 5. He will never be forgotten, ... ? 6. Something will be done about that problem right away, ... ? 7. The question was not discussed at the conference, ... ?

VI. Ask « why-questions» about the following statements, using the Passive Voice according to the pattern:

Pattern: T h ey d id n ’t tell h im th e tru th . W h y wa sn ’t h e to ld th e tru th ?

1. They don’t sing such songs any longer. 2. I can’t answer the telegram immediately. 3. They never mentioned the incident. 4. They didn’t expect him. 5. They needed money badly. 6. They must send him a telegram at once. 7. She can’t take this seat. 8. People always admire this picture. 9. They will ask him these questions. 10. They didn’t teach them how to use the dictionary.

VII. Change the sentences into the Passive Voice without leaving out

the subject of the action:

1.That company employs many people. 2. Did the news surprise you?

3.A thief stole Ann’s purse. 4. They often ask him such questions. 5. They sold us the house very cheap. 6. The director himself answered the phone.

7.People don’t use this road very often. 8. They wrote him a letter.

VIII. Change the sentences into the Passive Voice leaving out the subject of the action:

1. We don’t discuss such questions at our meetings. 2. They didn’t show this film last week. 3. We must finish this work as soon as possible. 4. We use this room only for special occasions. 5. They looked after the children. 6. They grow weat here. 7. They envied him his talent. 8. They often publish scientific articles in this magazine. 9. They taught him several languages when he was a child. 10. Did they explain the difficulty to you? 11. Somebody built this castle in the 16th century. 12. We shall invite him to take part in the concert.

1. They showed us the postcards of New York. 2. They gave the actress a bunch of flowers. 3. They gave us no explanation. 4. He will give me the money for my holiday. 5. After graduation they offered him a good job. 6. They offered us two tickets to the concert. 7. Did you send him a telegram? 8. They can’t tell her the truth. 9. He showed us the way to the station.

Pattern B: P eo p le sa y th a t h e wa s a clever ma n . It is sa id th a t h e wa s a clever ma n . He is sa id to b e a clever ma n .

1. They say that paper has been invented in China. 2. We consider that she was the best singer in America. 3. They reported that the delegation has left Kyiv. 4. Some people consider that Ha mlet is the summit of Shakespeare’s

art. 5. They believed that she knows several foreign languages. 6. They expected that he would return. 7. They supposed that the weather would be fine in April. 8. People know that he is armed.

Pattern C: T h ey lo o ked a t th e p ictu re with a d mira tio n . T h e p ictu re wa s lo o k ed a t with

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ad mira tio n .

1.They listened to his lectures with great interest. 2. He throws away all his old note-books at the end of the school year. 3. We must send for the doctor immediately. 4. People talk much about this film. 5. You must think the matter over. 6. They spoke to the dean on the subject. 7. People always laughed at his jokes. 8. They argued about the incident for a long time. 9. She likes when people talk about her.

X. Translate into English:

1. Дітей д о гл ян у ть. 2. По шту п р о гл ян у л и вр ан ц і. 3. Я д о вго н е міг зр о зу міти , ч о му з н ьо го сміял и ся. 4. На й о го п р о п о зи ц ію н е звер н у л и у ваги . 5. На й о го зн ан н я н е мо жн а

з тако ю ц ікавістю, що н іх то н е п о міти в, як я ввій шо в. 12. Над вашо ю п о р ад о ю тр еб а зами сл и ти ся, мо жл и во ми п р и й мемо її.

XI. Translate into Ukrainian:

1. He doesn’t like to be laughed at. 2. The doctor who was immediately sent for said that the sick man must be taken to hospital. 3. Heat and light are given to us by the sun. 4. Your question can’t be answered. 5. I was told some very interesting news. 6. The game was watched with great interest. 7. Nearly all the furniture will be taken out of the room. 8. I think that your plan will not be objected to. 9. The book is often referred to. 10. I was told to come here at 5 o’clock.

XII. Open the brackets, using the correct form of the Active or Passive Voice:

1. Soon the plane (lo se) in the clouds. 2. He is not afraid of difficulties. He never (lo se) his head. 3. As he spoke his voice (rise) in excitement. 4. When the little houses (lea ve) far behind he (h u rry) along the road. 5. Streets must never (cro ss) against the traffic light. 6. Not a single voice (ra ise)

against him, everybody was sure he was right. 7. The stillness in the room (b rea k) only by a clock upon the wall. It almost (b rea k) her heart to leave

the old home. 8. If we (h u rry) with the work, it may (sp o il). 9. He (lea ve)

his home town in 1970.

XIII. Open the brackets, using the correct form in the Passive Voice:

1. By whom this film (ma ke)? 2. This book (write) many years ago, but it still (rea d ) with great interest. 3. What factory (sh o w) to the visitors tomorrow? 4. Library books must not (keep ) longer than a fortnight. 5. This house (p a in t) two years ago, I don’t know when it (p a in t) again? 6. These facts (n o t men tio n ) in his report. 7. Who the story (tra n sla te) by? 8. I am afraid our holidays (sp o il) by bad weather. 9. When the windows (wa sh ) last? 10. When the advertisement (p la ce) in the newspaper? 11. This museum (visit) by thousands of people every year.

4. Ці п р ед мети ви вч ають н а п ер шо му ку р сі. 5. М ен і п р о ц е н е

п о го д и . 8. Стел і завжд и фар б у ють у б іл и й ко л ір . 9. Він н е

XV. Choose a suitable phrase to accompany the Passive construction. Translate the sentences into Ukrainian:

1. Milk is sold ... . 2. These things are made ... . 3. The delegation was met ... . 4. The door was opened ... . 5. These machines are operated ... . 6. Her letters were often written ... . 7. Documents must be written ... . 8. The sky is covered ... . 9. The letter was sent ... . 10. He was greeted ... .

XVI. Insert the auxiliary or modal verb:

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1. The telegram ... sent at five o’clock yesterday. 2. I am sure, a lot of questions ... be asked when he finishes speaking. 3. The traffic rules must ...

always followed. 4. This book ... enjoyed by a person of any age. 5. Umbrellas and coats must ... left in the cloakroom. 6. The shops ... opened at 8 o’clock in the morning. 7. The doctor ... called early in the morning. 8. These questions won’t ... raised at tomorrow’s meeting.

XVII. Translate into English:

1. Р о ман н ап и сан о мо л о д и м тал ан о ви ти м авто р о м . 2. Ад р есу н а ко н вер ті б у л о н ап и сан о о л івц ем. 3. Ур ан ц і я

8. Цю кар ти н у б у л о н амал ьо ван о н евід о ми м х у д о жн и ко м .

The Passive Voice. Perfect Tenses

XVIII. Make the following sentences interrogative and negative:

1. This novel has been translated into Ukrainian. 2. The tickets had been sold by that time. 3. The telegram had been delivered in time. 4. The house will have been built by January. 5. He has been invited to the party. 6. This letter has just been signed by the director.

XIX. Open the brackets, using the Passive Voice:

1. He was sure that his mistake never (d isco ver). 2. When she returned, the subject of the conversation already (ch a n g e). 3. She didn’t follow the advice she (g ive). 4. Everybody (sen d ) an invitation? 5. All the books from the library (retu rn ) by the end of the term. 6. The invitation (refu se; a ccep t)? 7. I didn’t know that the letter (lo se). 8. He said he had never been there but he often (tell) about this place. 9. It always (kn o w) as a most

wonderful place for a holiday. 10. When my parents were born, television (n o t in ven t) yet. 11. I never (sp ea k) to like that before. 12. There are

books that (n o t rea d ) for years. 13. The house was dark and damp inside like any other building which (n o t live in ). 14. When we came to the cinema, all the seats (sell).

XX.Put the sentences into the Passive mentioning the agent where necessary:

1. The secretary has recently brought this letter. 2. Mary has lost her key. 3. We have looked for the telegram everywhere. 4. They went home after they had finished the work. 5. The police have arrested three men. 6. Somebody had cleaned my shoes. 7. I have posted the letter. 8. My little brother has broken this cup. 9. She has locked the door. 10. The children have eaten the cake. 11. They had written the composition before the bell rang. 12. By this time tomorrow, the president will have made the announcement. 13. I didn’t know that they hadn’t invited him. 14. Tom has just spilled the milk. 15. The teacher has checked our dictations. 16. They had told him the news before he left.

XXI. Translate into Ukrainian:

1. I haven’t been given a chance to explain. 2. You should do as you have been told. 3. He hasn’t been seen for a long time. 4. Everything will have been arranged by the end of the day. 5. Three men have been arrested by the police. 6. The work had been done by five o’clock yesterday. 7. The telegram has just been sent. 8. Yesterday I heard that he had been sent to London.

XXII. Translate into English:

1. Ця кімн ата завжд и п р и зн ач ал ася тіл ьки д л я го стей . 2.

закін ч ен о . 9. З ап р о шен н я н е б у л о п р и й н яте, о скіл ьки й о го о тр и мал и н ад то п ізн о .

The Passive Voice. Continuous Tenses

XXIII. Use the verbs in bold type in the Passive Voice:

1. He was sure that somebody was following him. 2. We couldn’t give him the daily program, we were still working it out. 3. Are they still painting tea cups by hand? 4. What are they selling in this little shop?

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5. Everybody is still laughing at his jokes. 6. They are making a lot of new experiments in their laboratory now. 7. What happened? Why was a crowd of people pushing the car? 8. She felt they were looking at her.

XXIV. Translate into Ukrainian:

1. I must go. I’m being waited for. 2. When she entered the classroom, the last student was being examined. 3. He’ll know why he is being sent there. 4. What goods were being loaded when you came to the port? 5. What is being done to improve things? 6. When I came to the town three years ago, the bridge across the Volga was still being built. 7. I didn’t realise that our conversation was being recorded. 8. This question is being discussed at the meeting now.

XXV. Complete the sentences using the Past Continuous Tense:

1. When I left the Institute I didn’t know yet the marks the students had got because their papers (lo o k th ro u g h ). 2. When I was a worker at

this factory this work still (d o ) by hand. 3. Just this very question (d iscu ss)

when I joined in the conversation. 4. I haven’t been to the show but I was present when the best photos (ch o o se). 5. He entered the hall in the dark

and didn’t understand at first what film (sh o w). 6. She had the feeling that she (wa tch ). 7. I wasn’t surprised that he (listen to with su ch in terest). He is a very good lecturer. 8. He was disturbed by the noise

coming from the room next to his. He was sure that some experiments (ma ke) there.

XXVI. Translate into English:

1. Не зах о д ьте д о ау д и то р ії. Там екзамен у ють сту д ен та. 2. У

зал і о б го во р юють д у же важл и ве п и тан н я. 6. Діти зн ал и , що за н и ми сп о стер ігають. 7. Що там о б го во р юють? — М аб у ть, у ч о р ашн ій філ ьм .

XXVII. Memorize the following proverbs. Translate them into Ukrainian:

1. Rome wasn’t built in a day. 2. Old birds are not caught with chaff. 3. What is done cannot be undone. 4. Don’t count your chickens

before they are hatched. 5. A tree is known by its fruit. 6. The devil is not so black as he is painted.

Indefinite Pronouns: all, both, either neither

XXVIII. Translate into Ukrainian:

1. We can all take part in this work. 2. All of them are here. 3. That’s all I can tell you about it. 4. They told us all about their holiday. 5. All I’ve eaten today is a sandwich. 6. I’ve been trying to find you all morning. 7. We all felt ill after the meal. 8. We are all going out for a meal this evening. 9. We spent all day on the beach. 10. I have brought you all the books you need for this work.

XXIX. Translate into English:

1. Во н и всі п ішл и в театр . 2. Усі д и кі твар и н и б о яться во гн ю.

3. Усі б у л и го то ві д о ісп и ту . 4. Уся кімн ата б у л а п р и кр ашен а

з н и м весь веч ір .

XXX. Translate into Ukrainian:

1. Both of these restaurants are very good. 2. They both graduated from the University last year. 3. We must both be there tonight. 4. You are both right. (o r both of you are right). 5. I couldn’t decide which one to choose.

I liked both. 6. He gave me two magazines yesterday. I have read both.

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Ці д іти о б о є мо ї. 12. Во н и о б о є мо жу ть вам д о п о мо гти .

XXXII. Translate into Ukrainian:

1. Neither of us will be at home tonight. 2. The guests sat on either side of a long table. 3. Neither of us is (o r: are) married. 4. Neither of the

children wants (o r: want) to go to bed. 5. Neither of us could remain there.

6. I can agree in neither case. 7. Neither of them knew your address. 8. We can go to either restaurant. 9. Do you want tea or coffee? — Either. I don’t mind. 10. Neither of the restaurants we went to was (o r: were) expensive.

XXXIII. Translate into English:

1. Ж о д ен з н ас (д во х ) н е згад у вав й о го . 2. Я н е б ач и в жо д н о го з н и х (д во х ). 3. Во н и о б о є н е зго д н і з вами . 4. Во н и о б о є н е вп ізн ал и мен е. 5. М и н е п р и й н ял и жо д н о ї (з

жо д н о го з н и х . 9. Ось д ві кн и жки . Ви мо жете взяти б у д ь-яку з н и х . 10. Ж о д н а з (д во х ) від п о від ей н е б у л а п р ави л ьн о ю.

EXERCISES FOR INDIVIDUAL WORK

I. Supply the missing prepositions:

1. She always felt uncomfortable when she was looked ... . 2. When will the old newspapers be thrown ... ? 3. He is spoken ... with warmth. 4. What’s that thing meant ... ? 5. The tickets must be paid ... immediately. 6. Each word he spoke was listened ... . 7. The question was not to be argued ... .

8. They read all the books that are much talked ... . 9. The matter was argued

... for days.

II. Use the verbs in bold type in the Passive Voice:

1. My chief has promised me a four-day holiday. 2. They have always listened to these lectures with interest. 3. She had written the answers to all the questions long before the end of the lesson. 4. They have always laughed at his jokes. 5. They have known this fact for years. 6. She said that they hadn’t invited him. 7. I wondered why they had posted the letter unstamped. 8. He left two years ago and we haven’t heard from him ever since. 9. Have

they told him about the changes in the timetable? 10. No one has lived in this house for the last hundred years.

III. Insert the auxiliary or modal verb:

1. A lot of houses ... been built in our town this year. 2. His parents ...

been married five years when he was born. 3. The next morning when I came out, I saw that the streets ... been washed out by rain. 4. Don’t close the window. It has just ... opened. 5. The construction of the bridge ... been finished before winter comes. 6. I wondered why he hadn’t ... taught any foreign language. 7. How long has this stadium ... built? 8. Close the door please, little Jane ... being washed. 9. He didn’t show much interest when earlier theories on the subject ... being discussed. 10. He couldn’t do a thing when he knew he ... being watched. 11. The boys watched how the car was

... cleaned. 12. His speech is ... translated for the foreign guests. 13. Many new houses ... being built in Kyiv now.

батьків.

V. Add o f if possible:

1. All ... the children listened to the story. 2. Almost all ... students study hard for exams. 3. Both ... those books are mine. 4. I bought two books. Both ... books were expensive. 5. I have two brothers. Both ... my brothers are in school. 6. All ... the students in my class are studying English.

7.Not all ... people are friendly, but most ... people have kind hearts.

8.Almost all ... children like fairy tales. 9. Both ... us were very tired.

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U N I T 11

TOPIC: SUPPLY

TEXT A

TEXT B

TEXT C

GRAMMAR: Sequence of Tenses. Direct and Indirect Speech

Indefinite Pronouns: every, each

READING DRILLS

1. Practise the pronunciation of the following words: a) stress the first syllable:

cost, schedule, care, proper, analyse, category, salary, charge, bond, rent, interest, payment, property, wear, tear, variable, total, since, increase, marginal.

b) stress the second syllable:

supply, supplier, consumption, production, include, commodity, prevail, concern, affect, select, demand, incur, divide, executive, additional.

Text A

Business people think of demand as the consumption of goods and services. At the same time, they think of supply as their production. As they see it, supply means the quantity of a product supplied at the price prevailed

at the time. Economists are concerned with1 market as a whole. They want to know how much of a certain product sellers will supply at each and every possible market price. Supply may be defined as a schedule of quantities that would be offered for sale at all of the possible prices that might prevail in the market. Everyone who offers an economic product for sale is a supplier.

The law of supply states that the quantity of an economic product offered for sale varies directly with its price. If prices are high suppliers will offer greater quantities for sale. If prices are low, they will offer smaller quantities for sale. Since productivity affects both cost and supply it is

important that care can be taken2 in selecting the proper materials. Productivity

and cost must be kept in mind3 in order to make the best decision. It means a business must analyse the issue of costs before making its decisions. To

make the decision-making process4 easier we try to divide cost into several different categories.

Fixed cost5 — the cost that a business incurs even if the plant is idle and output is zero. It makes no difference whether the business produces nothing, very little, or a lot.

Fixed costs include salaries paid to executives, interest charges on6

bonds, rent payments on leased properties7, local and state property taxes. They also take in depreciation the gradual wear and tear on capital

goods8 over time.

Variable cost9 — a cost that changes with changes in the business rate of operation or output.

Total cost10 — is the sum of the fixed and variable costs. It takes in all the costs a business faces in the course of its operations.

Marginal cost11 — the extra or additional cost incurred when a business produces one additional unit of a commodity. Since fixed costs do not change, marginal cost is the increase in variable costs, which stems from using additional factors of production.

COMMENTS

1. to be concerned with smth — зай мати ся ч и мо сь 2. ... care can be taken — ... п р о яви ти о б ер ежн ість

3.to keep in mind — п ам’ятати

4.decision-making process — п р о ц ес п р и й н яття р ішен н я

5.fixed cost — фіксо ван і ви тр ати

6.interest charges on — п р о ц ен тн і н ар ах у ван н я за ...

7.leased properties — о р ен д н а вл асн ість

8.wear and tear on capital goods — амо р ти зац ія засо б ів ви р о б н и ц тва

9.variable cost — змін н і ви тр ати

10.total cost — загал ьн і ви тр ати

11.marginal cost — д о д атко ві ви тр ати

VOCABULARY EXERCISES

I. Give the corresponding nouns to the following verbs:

a)to offer, to process, to supply, to change, to demand, to care, to price, to tax, to cost, to produce, to increase, to market, to state;

b)to consume, to differ, to select, to decide, to divide, to sell, to

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execute, to define, to depreciate, to lease, to operate, to pay, to analyse.

II. Find equivalents:

III. Translate the sentences paying attention to the italicized words:

1. His parents keep him well su p p lied with cash. 2. Fresh vegetables a re in sh o rt su p p ly at this time of year. 3. People who offer an economic product for sale are su p p liers. 4. M o n ey su p p ly is the total amount of money in circulation. 5. Ukraine has insufficient wa ter su p p lies. 6. Planes dropped food and medical su p p lies to the stranded

V. Define which of the following items best completes the statement: 1. T h e la w o f su p p ly sta tes

a.buyers will purchase more at lower prices than at higher prices.

b.sellers will produce more at higher prices and less at lower prices.

c.quantities offered for sale do not depend on price.

d.consumers buy more at high prices and less at lower prices.

2.As o u tp u t in crea ses

a.total costs fall.

b.fixed costs increase.

c.overhead costs per unit fall.

d.total variable costs fall.

3. A p ro d u cer is mo st lik ely to in crea se th e q u a n tity o f a p ro d u ct

su p p lied wh en

a.the consumer will pay a higher price for the product.

b.the quantity demanded decreases.

c.production costs increase.

d.there is government regulation.

VI. Fill in the blanks with prepositions or adverbs if necessary:

1. Business people think ... demand as the consumption ... goods and services. 2. Economists are concerned ... market as a whole. 3. Supply means the quantity ... a product supplied ... the price prevailed ... the time. 4. Supply is defined as a schedule ... quantities that would be offered ... sale ... all ...

the possible prices that might prevail ... the market. 5. The law ... supply states that the quantity ... an economic product offered ... sale varies directly

... its price. 6. ... productivity affects ... both ... cost and supply it is important that care can be taken ... selecting the proper materials.

VII. Complete the following sentences:

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1.Business people think of demand ... . 2. At the same time, they think of supply ... . 3. Economists want to know ... . 4. Supply may be defined ... .

5.Everyone who offers an economic product for sale is ... . 6. The law of supply states ... . 7. If prices are high ... . 8. Since productivity affects both cost and supply ... . 9. Fixed cost is ... . It includes ... . 10. Marginal cost is ... .

VIII. Answer the following questions:

1.What do business people think of demand (supply)? 2. What does the term « supply» mean? 3. Whom do we call a supplier? 4. What does the Law of Supply state? 5. Why is it important for a business to analyse the costs? 6. What categories is the cost divided into? 7. What is fixed cost?

8.What do fixed costs include? 9. What is variable cost? 10. Total cost is the sum of the fixed and variable costs, isn’t it? 11. What do you know about marginal cost?

ц ін о ю. 2. Ко жн и й , х то п р о п о н у є п р о д у кц ію н а п р о д аж, є п о стач ал ьн и ко м . 3. Кіл ькість п р о д у кц ії, зап р о п о н о ван о ї н а

READING DRILLS

1. Practise the pronunciation of the following words: a) stress the first syllable:

typical, perishable, length, foodstuff, offer, easily, difficulty, actual, tend, price, either, locally, sharply, generally, furniture, instance, stock, glut, rapidly;

b) stress the second syllable:

deteriorate, increase, decrease, particular, produce, producer, production, commodity, completely, adjust, encourage, create, belong, consumer, available,

throughout, condition, reduce, response.

Text B

Bananas are typical example of perishable goods1. By « perishable» we mean goods which cannot be stored for any length of time without going bad. Most foodstuffs are in the perishable category. Such goods are offered for sale as quickly as possible, and so the supply of perishables and the stock of perishables available at any time are usually the same in quantity.

This is not true in the case of non-perishable goods like coal, steel and cars, which do not deteriorate easily. The supply of cars in the market may not be the same as the actual stock of cars in the factories.

Economists talk about the Law of Supply, in which a rise in prices tends to increase supply, while a fall in prices tends to reduce it. If prices rise for a particular commodity, the rise will of course encourage producers to make more. On the other hand, if prices fall either locally or throughout the world, producers will reduce production. This can result in serious difficulties for many producers, and may cause them to go out of business completely. Overproduction2 of any commodity can also create difficulties, because it can lead to a glut on the market, which may cause prices to fall sharply.

Supplies of many commodities can generally be adjusted to suit market conditions. This means that changes in prices lead to changes in the quantity of a particular commodity which is made available to consumers.

Household goods3 and furniture belong to this category. In such instances supply is said to be « elastic» , because it can be increased or decreased rapidly in response to market prices.

COMMENTS

1.perishable goods — то вар и , що шви д ко п су ються

2.overproduction — п ер еви р о б н и ц тво ; н ад ви р о б н и ц тво

3.household goods — го сп о д ар ські то вар и ; п р ед мети д о машн ьо го вжи тку

VOCABULARY EXERCISES

I. Give the Ukrainian equivalents for the following words and word-combinations. Use them in the sentences of your own:

perishable/non-perishable goods; particular commodity; a rise in prices; on the other hand; overproduction; to go out of business; to reduce production; to encourage producers; to create difficulties; household goods;