Unit 7. Prices and their formation.

Pre-reading tasks:

Picture 1.

$ 59 $ 59 $ 59

Picture 2.

$ 585, 55 $ 199, 98 $ 150, 87

Look at the pictures and answer the questions:

• Why do all these clocks being different have the same price?

• Have you ever seen the prices like in picture 2?

• Do they attract your attention?

• What is your opinion about them?

• What do you know about the wholesale price and retail price? What’s the difference between them?

• What are prices expressed in?

“Money is a kind of poetry”

What do you think about the above words of American poet Wallace Stevens (1879-1955)?

Vocabulary.

Read the definitions of the following economic concepts, try to remember them and be ready to use.

asset – something such as money or property that a person or company owns.

to sustain – to provide the condition in which smth can happen or exist.

sales revenue – receipts from sales.

to cancel out – to stop smth from having any effect.

fine tuning – the effort to make precise adjustments in the level of activity via fiscal and monetary policy

1. Match English and Ukrainian equivalents.

1. cash discount	урівноважити, збалансувати, нейтралізувати
2. odd pricing	точна настройка (вживання заходів економічної політики відповідно до характеру коливань економічної кон’юнктури)
3. alternative	надмірний вплив
4. price lining	зростання, підвищення
5. consumer’s choice	знижена або дисконтна ціна
6. excessive influence	запропонована ціна
7. to obtain	знати
8. solely	лінійна ціна
9. responsive	одержувати, отримувати
10. asset	вибір споживача
11. to be aware of	падіння, зменшення
12. sales revenue	майно, актив
13. an increase	знижка при оплаті готівкою
14. a decrease	тільки, виключно, єдино
15. suggest pricing	доход від продажу
16. to cancel out	варіант; альтернатива
17. discount pricing	що реагує, реагуючий
18. fine tuning	неокруглена ціна
WARMING UP.

Think and say your opinion.

• What is price from the point of view of the customer and from the point of view of the economist?

• What factors may influence price formation?

• Are prices on the same goods constant or changeable in different periods of our life? Why does it take place?

Read the text and be ready to render it.