Text 2. Demand and supply

Translate the following sentences from Russian into English. Use Present, Past or Future Indefinite Passive.

1. Мне заплатили. – Мне платят. – Мне заплатят.

2. Цены снизили. – Цены снижают. – Цены снизят.

3. Ему сказали. – Ему говорят. – Ему скажут.

4. Производство расширили. – Производство расширяют. – Производство расширят.

5. Местоположение выбрали. – Местоположение выбирают. – Местоположение выберут.

6. Рабочих наняли. – Рабочих нанимают. – Рабочих наймут.

7. Доход подсчитали. – Доход подсчитывают. – Доход подсчитают.

8. Трудовые навыки были оплачены. – Трудовые навыки оплачивают. - Трудовые навыки будут оплачены.

9. Сырье доставили. – Сырье доставляют. – Сырье доставят.

10. Решения приняли. – Решения принимают. – Решения примут.

Demand is a consumer’s willingness and ability to buy a product or service at a particular time and place.

Demand and supply are the key concepts in both macroeconomics and microeconomics.

In macroeconomics demand is the function of income and supply (or aggregate supply is a function of expected sales to consumers, businesses and governments). And in microeconomics demand and supply are primarily a function of price.

The law of demand describes the relationship between prices and the quantity of goods and services that would be purchased at each price. It says that all else being equal, more items will be sold at a lower price than at a higher price.

It was A.A.Cowrnot (1801 – 1877) who discovered the law of demand. He was a professor of mathematics at the University of Lyons, France, and it was he who drew the first demand curve in the 1830s.

The demand curve shows the relation between price and quantity demanded, holding other things constant.

Current theory rests on the foundation laid by Marshall (1890), Edgeworth (1881), and Pareto (1896). Marshall viewed demand in a cardinal context, in which utility could be quantified. Most contemporary economists hold the approach taken by Edgeworth and Pareto, in which demand has only ordinal characteristics and in which indifference or preferences become central to the analyses.

To the economist, supply refers to the number of items 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 of a product at a higher price and less at a lower price.

The laws of demand and supply and the connection between the cost of production and supply were first worked out by D.Lardner (1793 – 1859), an Irish professor of philosophy at the University of London.

The supply curve shows the relation between price and quantity supplied, holding other things constant.

Why does the quantity of a product supplied change if its price rises or falls? The answer is that producers supply things to make a profit. The higher the price, the greater the incentive to produce and sell the product.

The price at which goods and services actually change hands is known as the equilibrium, or market price. It is the point at which the quantity demanded exactly equals the quantity supplied.

Shifts in demand or supply will affect market price. When everything else is held constant, an increase in demand will result in an increase in market price, and vice versa. Similarly, an increase in supply will result in a decrease in price, and vice versa.

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