I. Unit 7. Supply and demand (1)

1. Find the following word-combinations in the texts and translate them into Russian.

1. we define the market, a set of arrangements, to bring together the buyer and the seller, to operate through intermediaries, to transact business, to stock the shelves, to bid against each other, superficially different, to guide resource allocation, to purchase at each conceivable price, to become lucrative, distinction

2. equilibrium price, to approach the problem diagrammatically, the horizontal axis, to plot the point, to obtain the demand curve, to re-examine the analysis of excess supply, voluntary participation, to involve buyers in forced purchases, to reconsider price determination, to bid up the price, to eliminate excess demand

2. Find in the texts English equivalents for the following.

1. цены служат ориентиром для распределения ресурсов, фондовая биржа, от имени клиента, устанавливать цену, гарантировать, сосредоточиться на основных характеристиках, изучить взаимодействие этих сил, поведение покупателя и продавца, назначать цену, диапазон цен, ограниченное количество шоколада будет востребовано, при прочих равных, стимул поставлять товар, быть боле точным, как цена корректируется (регулируется), чтобы сбалансировать объем спроса и предложения, стремиться увеличить поставки

2. условия на рынке, цена на шоколад, обозначить, рыночное равновесие, ниже равновесной цены, сокращать (урезать) цены

2. Say what is meant by:

the quantity demanded, the quantity supplied, a market is a set of arrangements, at antique auctions the sellers take a passive role, the prices guide the society in choosing what, how, and for whom to purchase, price and quantity cannot be considered separately, buyers bid against each other, to stock the shelves, at each conceivable price, even when chocolate is free only a finite amount will be wanted

VI. Match the words in the left-hand column with their synonyms:

lucrative increasingly technical advances to imply to purchase

more and more over a period of time bringing a lot of money infer to buy progress in science, technology

Match the words in the left-hand column with their antonyms:

exceed essential adjust decay frustrated

disarrange happy less than a number or amount unimportant fusion

IX. Tasks for thought.

1. Which of the following could cause a rise in house prices?

1. A decline in house-building.

2. An increase in lending by building societies.

3. A rise in mortgage interest rates.

4. An increase in the willingness of local authorities to sell council houses to tenants.

2. The distinction between shifts of the demand and supply curves and movements along them is an important one. Place ticks in the appropriate columns of Table 1 to show the effects of changes in the ‘other things equal’ categories detailed in the first column. (Two ticks are required for each item).

Table 1. Movements of and along a curve

Change in ‘other things equal’ category	Shift of demand curve	Movement along demand curve	Shift of supply curve	Movement along supply curve
Change in price of competing good
Introduction of new technique of production
A craze for the good
A change in incomes
A change in price of a material input

1. Suppose cold weather makes it more difficult to catch fish. What happens to the supply curve for fish? What happens to equilibrium price and quantity?

2. Suppose cold weather also reduces the quantity of fish demanded because people do not go shopping. Show what happens to the demand curve for fish?

3. What happens to the equilibrium quantity of fish when cold weather sets in and both these effects occur? Can you say what happens to the equilibrium price of fish?