XII. Answer the following questions.

1. What is supply?

2. What are the determinants of supply?

3. What does the law of supply state?

4. What is the general form of a supply curve? What does it mean?

5. What is market price?

6. How do shifts in demand and supply affect prices?

XIII. Re-read the text to find out which of the following statements are correct.

1. The determinants of supply do not include the cost of factors of production.

2. The law of supply indicates that the quantity of good supplied increases as its price decreases.

3.The general form of a supply curve is upward sloping.

4. If the cost of computer components falls, then the supply curve for computers shifts to the left.

5. The price at which there is neither surplus nor shortage is called equilibrium price.

6.Shortage is the quantity supplied exceeds the quantity demanded.

7.An increase in supply will result in an decrease in price.

8.At the equilibrium price, sellers receive signals to increase production rates while buyers receive signals to increase purchases in a given time period.

XIV. Match the following English word combinations with their Ukrainian

equivalents.

1.be in excess supply а. загальний об'єм пропозиції

2. be in low supply b. вичерпати запас

3. bulk supply c. грошова маса

4. direct supply d. наявний запас

5. electric supply e. бути з лишком

6. exhaust supply f. постачання електроенергією

7. fresh supply g. водопостачання

8. money supply h. постачання крупними партіями

9. floating supply і. повсякденна пропозиція

10. rival supply j. бути дефіцитним

11. total supply k. прямі поставки

12. supply a gap 1. нові поставки

13. water supply m. пропозиція зі сторони конкурентів

14. to store supply n. заповнити прогалину

15. supply on hand о. робити запаси

XV. Choose the correct answer.

1. The supply curve is upward sloping because:

1. As the price increases, so do costs

2. As the price increases, consumers demand less

3. As the price increases, suppliers can earn higher levels of profit or justify higher marginal cost to produce more

4. None of the above.

2. When university students leave for the summer holiday, the demand for meals at the local cafe declines. This results in:

1. A decrease in equilibrium price and increase in quantity

2. An increase in equilibrium price and quantity

1. A decrease in equilibrium price and quantity

2. An increase in equilibrium price and a decrease in quantity

3.A change in the price of a good corresponds to a:

1. A change in the quantity demanded of the good

2. A shift in the supply curve of the good

3. A shift in the demand curve of the good

4. None of the above

4. A shift of supply is defined as a change in the:

1. Quantity demanded

2. Quantity supplied due to a change in price

3. Quantity supplied at alternative prices

d) Equilibrium quantity

5.A downward shift in the supply curve and a rightward shift in the supply curve are both characterized by:

1. A smaller quantity supplied and a greater price

2. A greater quantity supplied and a greater price

3. A smaller quantity supplied and a lower price

4. A greater quantity supplied and a lower price

6. Equilibrium price:

1. Is determined by aggregate supply

2. Is set by price ceiling

3. Is market-clearing

4. Is unaffected by taxes

7. In a market economy, when there is a surplus in a market a firm has an incentive to:

1. Raise prices

2. Lower prices

3. Raise production

4. None of the above