Demand and supply

Demand, it may be said, is the desire for a commodity plus the ability and willingness to buy it. Economists define demand as a consumer's desire or want, together with his willingness to pay for what he wants.

The relationship of demand and price is expressed by the Law of Demand. It describes the relationship between the prices and the quantity of goods and services that would be purchased at different prices. It says that the demand for an economic product varies inversely with its price. In other words, if prices are high the quantity demanded will be low.

Supply refers to the quantity of a good that existing suppliers or would-be suppliers would want to produce for the market at a given price. In this context, and usually in economics, the term "good" includes services as well as tangible products. The quantity of a good that can be supplied to a market varies up or down, either because existing suppliers increase or reduce their output quantities, or firms stop producing altogether and leave the market, or new firms enter the market and begin producing goods.

The relationship of supply and price is expressed by the Law of Supply. It says that the quantity of an economic product offered for sale varies directly with its price. It describes the relationship between the prices and the quantity of goods and services that would be offered for sale at all of the possible prices that might prevail in the market. In other words, suppliers will offer greater quantities for sale at a higher price and less at a lower price.

Economic. Activity

Most people work to earn a living, and produce goods and services. Goods are either agricultural (like maize .arid milk) or manufactured (like cars and paper). Services are. such things as education, medicine and commerce. Some people provide goods; some provide services. Other people provide both goods and services. For example, in the same garage a man may buy a ear or some service which helps him to maintain his car.

The work people do is called economic activity. All economic activities together make up the economic system of a town, a city, a country or the world. Such an economic system is the sum-total of what people do and what they want. The work people undertake either provides what they need or provides the money with which they can buy essential commodities. Of course, most people hope to earn enough money to buy commodities and services which are non­essential but which provide some particular personal satisfaction, like toys for children, visits to the cinema and books.

1. Answer the questions:

1. What do they produce?

2. Where are goods produced?

3. What do schools, hospitals and shops provide?

4. What two different things can a man buy in, for example, a garage?

5. What do we call the work which people do?

6. What is an economic system the sum-total of?

Future profession

The end of school is the start of our independent life and the beginning of the most serious examination. In order to do well at this examination it is necessary to choose the right road in life which will help us best to live and work for own good and for the benefit of our country.

Everybody has a chance to develop and use knowledge and education received during the school years. There are a lot of different trades and professions, and each must choose the occupation in which he or she can best develop one's own talent and abilities. Our society needs well-educated people. Nowadays the profession of an economist has become one of the most useful, modern and interesting. That is because our country is moving towards market economy and different forms of property are being established. There is a place for an economist at every firm and factory. An economist exercises different functions. He or she can determine the structure of an enterprise and calculate costs as well as probable profits. An economist analyses the condition of the market and prospects for its development in the future.

Having a good command of the economic situation in the region and the demands of the market a person with an economist's diploma may establish his own business, or he may become a partner of a joint venture. It is very important for an economist to know foreign languages, especially English. That is because contracts between our country and many countries of the world are becoming wider with every coming day. Every economist has a chance to go abroad or to deal with foreign businessmen coming to our country.

But to become a good economist one must work hard and get not only theoretical knowledge but also great practical skills.