§1 Preparations, §2 mediators, §3 at the same time, §4 relations, §7 peculiarity,

§8 Decrease

5. Find the definitions of these words and phrases in the text.

1. a person who purchases goods

2. to offer (an amount) in attempting to buy something

3. the sum in money or goods for which anything is or may be bought or sold

5. the amount of a commodity that consumers are willing and able to purchase at a specified price

6. the amount of a commodity that producers are willing and able to offer for sale at a specified price

7. Look for details in the text and choose the proper option.

1. A market is a set of arrangements by which buyers and sellers are in contact ………… .

1. to see each other

2. to fight with each other

3. to exchange goods or services

2. Intermediaries (stockbrokers) who transact business …………… .

   1. on behalf of clients

   2. themselves

   3. on behalf of customers

3. Markets determine prices that ensure that the quantity people wish to buy

equals …… .

1. the quantity people wish to sell

2. the quantity people wish to negotiate

3. the number people don’t wish to sell

1. Demand describes ……………. at every price.

   1. the position of a product

   2. the behaviour of sellers

   3. the behaviour of buyers

2. Higher tickets prices will reduce …………….. .

   1. the quantity demanded

   2. the quantity supplied

   3. the quantity sold

8. Which of the three is the key message of the text?

1. Markets determine prices that ensure that the quantity people wish to buy equals the quantity people wish to sell.

2. The prices in the market guide society in choosing what, how, and for whom to purchase.

3. Demand describes the behaviour of buyers at every price. The term ‘quantity demanded’ makes sense only in relation to a particular price. A similar distinction applies to supply and quantity supplied.

Vocabulary Focus

8. Fill in the table with the missing derivatives from the text.

Nouns	Verbs	Adjectives/Adverbs
	supply
demand
	reduction
		distinct
charge
	exceed
		simultaneous
		intermediate
equality
	arrange

8. Match the halves of the phrases.

1) to guide 2) a set of 3) to be in contact 4) to operate chiefly 5) to take 6) to equal 7) ten times 8) to study 9) to purchase 10) to get 11) to set

a) resource allocation b) into the ground c) through intermediaries d) at each and every price e) to exchange goods or services f) the price g) a passive role h) the interaction of these forces i) the quantity people j) an upper limit on k) arrangements

8. Paraphrase the following phrases in italics using the expressions from ex. X.

1. Buyers and sellers are going to replace goods or services.

2. Antique auctions force buyers to bid against each other with the seller stepping aside.

3. Buyers wish to give any possible charge.

4. He is looking for a vacant spot in the ground.

5. We defined markets as a range of preparations through which prices guide resource allocation.

A springboard for discussion

Answer the following questions about the market that you know or would like to work for:

• What competitors are there in the market?

• Is competition in the market strong?

• Who is the market leader?

• Who are the key players?

• Who mainly makes up the competition from the market leader’s point of view?

• If one competitor increases its market share can the others keep their market share at the same level?