Price (in UAH)

SUPPLY

SUPPLY

UNIT 4

Comprehension check.

1. What economic factors does market demand depend on?

2. What non-economic factors influence market demand?

Grammar: Modal Verbs: general characteristics

Assignment 1. Read and learn the following words and phrases.

to refer (to) – стосуватись;

to represent – уособлювати, представляти;

to define – визначати;

sale – продаж;

to state – стверджувати;констатувати; (точно) визначати;

directly – прямо; безпосередньо; пропорційно;

variable – змінна;

to plot – складати (план, схему); наносити (дані) на графік;

axis – вісь;

supply curve – крива пропозиції;

to shift – зміщати(ся), зсувати(ся);

to intersect – перетинати(ся);пересікати(ся); intersection – перетин;

therefore – ось чому; з цієї причини;

equilibrium – рівновага; збалансованість;

point – точка; ~ of intersection – точка перетину; ~ of equilibrium – точка рівноваги;

to predict – передбачати;

surplus – надлишок; syn. excess;

shortage – нестача, дефіцит; syn. deficit;

eventually – врешті решт; насамкінець;

opposite – протилежний; ~ effect – протилежний результат/дія;

to decline – спадати; зменшуватись;

to be in position – бути в змозі; бути в стані (щось зробити);

similarly – аналогічно;

to reduce – зменшувати;

to raise – збільшувати; піднімати;

technological development – технологічне удосконалення

Assignment 2. Read and translate the text.

Just in the same way as demand represents the behaviour of the buyers in the market, supply refers to the behaviour of the sellers. Economists define supply as the quantity of products that sellers will offer for sale at different prices at a particular time and place. The law of supply states that sellers will offer more product at a higher price and less at a lower price. Generally speaking, supply varies directly with price, i.e. the quantity supplied will increase as the price increases, and vice versa.

Economists usually show the relationship between price and quantity supplied on a graph, with the price variable plotted against the Y-axis and the quantity variable plotted against the X-axis. The supply curve rises from the left to the right and shifts either to the right or to the left when supply changes.

When we plot supply and demand on the same graph, we find that they intersect at a price where the quantity demanded is equal the quantity supplied. This point of intersection is therefore called the equilibrium point or market price. We can predict the behaviour of the market price. If surpluses develop (excess supply), a signal is sent to the sellers to lower the price. If shortages develop (excess demand), a signal is sent to the sellers to increase the price. Eventually supply will again equal demand.

The following factors might affect the quantities supplied:

· Changes in the cost of production. If it costs the producers less to produce their products, they will be able to offer more of them for sale. An increase in production costs will have the opposite effect – supply will decrease.

· Other profit opportunities. Most producers can make more than one product. If the price of a product they have not been producing (but could if they choose to) increases, many will shift their output to that product.

· Future expectations. If producers expect prices to increase in the future, they may increase their production now to be in position to profit later. Similarl y, if prices are expected to decline in the future, producers may reduce production, and supply will fall.

· Changes in technology. Technological developments will raise the quantity of the products supplied.

Assignment 3. Answer the following questions.

1. Whose behaviour does supply refer to?

2. How do economists define supply?

3. What does the law of supply state?

4. How does supply vary with price?

5. In what way are supply and price plotted on a graph?

6. How does the supply curve shift when supply changes?

7. What do we call the equilibrium point (market price)?

8. How do we predict the behaviour of the market price?

9. What factors other than price might affect supply?

10. What are the influences of changes in the cost of production/ in technology on the quantities supplied?

11. How do future expectations or other profit opportunities influence supply?

Assignment 4. Transcribe the following words and group them together according to the stress pattern: ●○(first syllable stressed), ○●(second syllable stressed).

Variable, eventually, development, shortage, surplus, effect, signal, behaviour, similarly.

Assignment 5. Translate into English.

Поведінка покупців/продавців на ринку; в певний час та в певному місці; закон пропозиції стверджує; говорячи в загальному; показувати щось на графіку; крива пропозиції зростає зліва направо; вісь X (Y); точка перетину; знижувати/підвищувати ціну; зростання вартості виробництва; мати протилежний результат; якщо очікується, що ціни зростуть в майбутньому.

Assignment 6. Translate into Ukrainian.

Just in the same way as…; to offer smth for sale; supply varies directly with price; price/quantity variable; if surpluses/shortages develop; the cost of production; profit opportunities; future expectations; producers will shift their output to that product; to be in position to profit later.

Assignment 7. Supply the missing prepositions. Find in the text the corresponding sentences, read and translate them paying attention to the ways of translating prepositions.

1) supply refers … the behaviour … the sellers … the market; 2) will offer products … sale … different prices … a particular time and place; 3) the relationship … price and quantity; 4) price variable plotted … the Y-axis; 5) shifts either … the right or … the left; 6) a signal is sent … the sellers; 7) changes … the cost of production; 8) supply varies directly … price.

Assignment 8. Match and learn the synonyms. Use any 5 words in the sentences of your own.

A: to decline; eventually; opposite; effect; to lower; behaviour; output; to shift; to expect;

B: contrary; to reduce; to predict; production; to fall; finally; result; to change; conduct.

Assignment 9. Paraphrase the following sentences using the synonymous words.

1. All his technological developments led to the contrary result – the production cost increased. 2. Experts predict prices to fall in autumn. 3. As the company expected the demand for these products to decline, they finally decided to reduce the production. 4. When prices shift to the worse economists can predict the conduct of the buyers in the market.

Assignment 10. Match and learn the opposites. Use any 5 words in the sentences of your own.

A: directly; particular; shortage; to lower; to increase; variable; the same; demand; sellers; less;

B: more; to decrease; opposite; constant; supply; buyers; inversely; general; to raise; surplus.

Assignment 11. Fill in the missing words (see as.10). The first letter is done for you.

1. If the production costs d… we can predict that supply will i… 2. In g… s… varies d… with price. 3. When inflation is l… than one per cent prices stay c… 4. If s… develop the s… l… the price. 5. S… represents the behaviour of the s… just in the s… way as d… represents the behaviour of the b… in the market.

Assignment 12. Transform the following phrases into word partnerships (n+n) as in the model.

Model: point that indicates equilibrium – equilibrium point

1) price that is accepted by the market –

2) costs that cover production –

3) curve on the graph that represents supply –

4) opportunity to make profit –

5) supply that exists in excess –

6) demand that exists in excess –

7) variable that represents the price –

8) variable that represents the quantity –

9) expectations for the future –

10) point on the graph that indicates intersection –

Assignment 13. Use some of the word partnerships formed in as.12 in the proper sentences.

1. We hope that the new line of products will come up to (виправдає) our …. 2. Introduction of a more efficient technology has considerably lowered the …. 3. Both … and … can be plotted on the graph showing the relationship between price and quantity supplied. 4. If we shift our output to this more advanced product we can expect our … to increase. 5. Point on the graph that shows a price at which the … and the … intersect is referred to as … or …. 6. When surpluses of certain products develop we speak about …. In the opposite case, when shortages develop, we face … for these particular products.

Assignment 14. Reconstruct the word-order in the following sentences.

1. the, on, Economists, supply, plot, and, graph, demand, same, usually.

2. the, called, point, and, demand, at, Supply, equilibrium, intersect, the, point.

3. to predict, the, use, Economists, behaviour, the, market, graph, price, of, the.

4. If, supply, price, there is, the sellers, the, will lower, excess.

5. sellers, price, the, If, demand, will raise, excess, the, there is.

6. again, demand, will, equal, Eventually, supply.

Assignment 15. Look at the graph below showing the relationship between the price of a candy bar and the quantity of candy bars supplied.

2,5

- supply line

Дата добавления: 2014-11-29