2. A typical demand curve

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.

3. Which of the following would tend to have an inelastic

demand curve?

a. complementary goods.

b. luxuries.

c. goods with substitutes.

d. necessities.

6. 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:

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:

1. He was given two days to think the matter over. 2. These magazines must be returned in an hour. 3. The money will be spent on food. 4. The guests were shown the places of interest in the city. 5. The new method will be shown to the young specialists today. 6. We were shown a new film. 7. The instructions were given to everybody.

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, ... ?

6. Ask «why-questions» about the following statements, using

the Passive Voice according to the pattern:

Pattern: They didn’t tell him the truth.  Why wasn’t he told the truth?

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.