Comments

1. purchasing power — купівельна спроможність

2. demand curve — крива попиту

3. Giffen paradox — парадокс Гіффена

Vocabulary exercises

I. Form adverbs from the following adjectives:

actual, usual, final, normal, willing, economic, particular, mere, obvious, frequent, steep, inverse, careful, constant, large, relative, effective, according.

2. Fill in the blanks below with the most appropriate terms from

the list:

price; service; purchasing power; demand curve; demand; incomes; demand function; commodity.

1. Demand means the amount of a ________ or ________ that economic units are willing to buy at a given price. 2. Demand is not only influenced by ________ but also many other factors. 3. Effective demand is always supported by _________ and not merely the desire for a particular commodity or service. 4. The demand curve is the graphical representation of the _________ , i. e., of the relationship between price and ________ . 5. If the conditions that all other factors remain unchanged is relaxed and the ___________ of the demanders are allowed to change, then the whole ___________ will shift its position.

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

1. In economic theory, demand means the amount ... a commodity or service that economic units are willing to buy, or actually buy, ... a given price. 2. Demand is ... supported ... purchasing power, and not merely the desire ... a particular commodity or service. 3. Demand is not ... influenced ... price, but also ... many other factors, such as the incomes ... the demanders and the prices ... substitutes. 4. The demand curve is the graphical representation ... the demand function. 5. It normally slopes downwards ... left ... right, which means that more is bought ... low prices than ... higher prices.

IV. Match each term in Column a with its definition in Column b:

Column A Column B

1. demand	a. Money value of a good or service.
2. the Law of Demand	b. The graphical representation of the demand function.
3. consumer	c. Explains how much a change in price affects the quantity demanded.
4. price	d. good or service whose consumption is seen as essential in order to maintain a minimum standard of living in a society.
5. demand curve	e. A consumer’s willingness and ability to buy a product or service at a particular time and place.
6. demand elasticity	f. Anyone who uses goods or services.
7. purchasing power	g. All else being equal, more items will be sold at a lower price than at a higher price.
8. necessity	h. The value of a unit of money measured in terms of what it can buy.

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

1. Demand curves

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.