IV. Define which of the following items best completes
the statement:
A typical supply curve
a. slopes upwards from left to right.
b. slopes downwards from right to left.
c. is usually a straight line.
d. is always a curved line.
V. Complete the following sentences:
1. In economic theory, the term «supply» denotes ... . 2. Just as in the case of demand, supply is determined also by ... . 3. The supply curve is ... . 4. It shows us ... . 5. The supply curve normally slopes ... . 6. This indicates that ... . 7. Another exception is ... . 8. If changes in the other factors are allowed ... .
VI. Answer the following questions:
1. What does the term «supply» denote in economic theory? 2. What factors is supply determined by? 3. What is called «supply function»? 4. What is supply curve? 5. What does the supply curve show? 6. How does the supply curve normally slope? 7. What does it indicate? 8. Are there any exceptions to supply curve?
Communicative situations
1. Round-table discussion. The question on the agenda is «Supply and demand determine prices in a market economy».
Questions for discussion:
«The law of demand works because consumers have the ability to substitute. The law of supply works because producers have the ability to substitute».
Explain these statements.
The four laws of supply and demand are the following:
a. An increase in demand generally raises price and raises quantity demanded.
b. A decrease in demand generally _________ price and ________ quantity demanded.
c. An increase in supply generally lowers price and raises quantity demanded.
d. A decrease in supply generally ________ price and _________ quantity demanded.
Fill in the blanks. Demonstrate each law with a supply-and-demand curve given below:
production costs change as output changes:
|
Quantity q |
Fixed cost (FC) $ |
Variable cost (VC) $ |
Total cost (TC) $ |
|
0 1 2 3 4 5 6 |
55 55 55 55 55 55 55 |
0 30 55 75 105 155 225 |
55 85 110 130 160 210 280 |
|
The major elements of a firm’s costs are its fixed costs (which don’t vary at all when output changes) and variable costs (which increase as output increases). Total costs are equal to fixed plus variable costs: TC= FC + VC. | |||
Grammar exercises Sequence of Tenses. Direct and Indirect Speech
I. Change the following sentences as in the pattern:
Pattern: I need to talk to you.
My friend told me that he needed to talk to me.
1. I will call you tomorrow. 2. I know your cousin. 3. I’m getting hungry. 4. I can’t read your handwriting. 5. I think you speak English very well. 6. Your pronunciation is very good. 7. I may be absent from class tomorrow. 8. I’m not married. 9. I have to take another English course.
II. Use Indirect Speech:
1. She said: «I like oranges better than bananas». 2. «I am going away tomorrow, mother», he said. 3. The dean said: «I want to have a word with you». 4. The boy said: «I’ll never smoke again». 5. «We’ll have enough time to finish the work», the workers said. 6. The librarian said: «There are a lot of English books in our library». 7. «Nothing grows in my garden. It never gets any sun», she said. 8. «It isn’t so foggy today as it was yesterday», I remarked. 9. «You can keep that book, if you like, John», she said. 10. «We have a lift but very often it doesn’t work», they said.