2. Change the sentences in order to use the auxiliary verbs «do» or «did».

Pattern: These goods and services have a value.

These goods and services do have a value.

The people went to the city to find work.

The people did go to the city to find work.

1. These factors have an effect upon the economic system. 2. A change in government usually means a change in policy. 3. Stable conditions led to an improvement in the general state of the economy. 4. The minister wanted to make a fundamental change in the national economic policy. 5. The decision made by the trade unions affects everyone in the industry. 6. The manager tried to change the methods. 7. Short-term economic anarchy has a bad effect on long-term stability and investment. 8. The government encourages commercial enterprises. 9. The representatives of the employers and employees met last week. 10. The surplus of money provided capital for a new housing scheme.

III. Insert the article the or a(n) :

Pattern: There is ... demand for steel. ... demand for steel is increasing.

There is a demand for steel. The demand for steel is increasing.

1. There is ... shortage of bananas. ... shortage of bananas will continue for some weeks. 2. There has been ... change of government. ... change in government will probably mean a change of policy. ... change of policy may lead to ... short period of instability. ... short period of instability could create ... feeling of insecurity. 3. The speaker suggested ... special commission to study economic conditions. He said that ... special commission should examine all aspects of national economic life. ... commission should investigate ... demands of ... workers and ... conditions under which they work. It should also hear ... views of ... employers. Such ... commission would render ... very valuable service to ... nation.

IV. Complete the following sentences:

1. Economists define demand ... . 2. Money has no value in itself, but serves ... . 3. When we exercise our choice ... . 4. Our decisions indicate ... . 5. Elasticity of demand is ... . 6. Demand is inelastic when ... . 7. We buy basic necessities even if ... .

5. Say whether these statements are true or false and if they are

false say why:

1. When people offer money for particular goods, they indicate that a demand exists. 2. Money is usually valuable in itself. 3. People do not usually have everything they want. 4. Our decisions on how to use our money show what we need most and what we are willing to do without. 5. Basic needs come before luxuries. 6. Demand for essential commodities is always elastic.

VI. Answer the following questions:

1. Elasticity of supply, as a response to changes in price, is related to demand, isn’t it? 2. What is the definition of demand? 3. How is demand indicated? 4. What is money? 5. What do we do when we exercise our choice? 6. What comes second in our scale of preferences? 7. What is our third priority? 8. What is elasticity of demand? 9. When is demand inelastic?

7. Retell the text B using the following words and

word-combinations:

Elasticity of supply; changes in price; consumer’s desire; to offer money; particular goods or services; means of exchange; income; elasticity of demand; essential commodities; personal pleasure; relatively cheap; basic necessity; non-essentials; personal scale of preferences; accordingly; the prices rise steeply.