Say whether these statements are true or false, and if they are false, say why?

Спрос и предложение

Предложение

Study the words and the word-combinations.

1.   Read the text and assimilate its information [6, с. 34—37].

Supply

The quantity of a good or service sellers are willing to sell in a market is affected by a number of important influences:

1. The price of the good.

2. The current prices of inputs needed to produce and market the good.

3. Current technology available to produce and market the good

4. The prices of other goods that can be produced with inputs used or owned by the seller.

5. Expectations about future prices.

6. The number of sellers serving the market.

The quantity supplied of a good is the quantity sellers are willing and able to make available in the market over a given period at a certain price, other things being equal. In this case the other things being held equal are all the previously listed supply determinants other than the price of the good itself.

The concept of supply as used in economics is a relationship between the prices of an item and the quantity supplied. Like demand, supply is not a fixed quantity. Instead it signifies how the quantity sellers will oiler varies with price. The amount sellers bring to the market over any given period depends on the price of the product and the other supply determinants.

The law of supply states that in general, other things being equal, the higher the price of a good, the greater the quantity of that good sellers are willing and able to make available over a given period. The law of supply is an implication of a model that is based on the assumption that sellers seek to maximize net gains from their activities. The law represents the hypothesis that is widely supported by empirical evidence.

2.  Answer these questions basing your answers on the text:

1) What does the quantity of goods which sellers bring to the market depend on?

2) What is supply?

3) What do supply and demand have in common?

4) What does supply signify?

5) What happens when the law of supply operates?

Say whether these statements are true or false, and if they are false, say why?

1) As our production resources are limited the supply of most goods is not enough to satisfy everybody.

2) The greater part of supplied goods is represented by necessities (предметы первой необходимости).

3) Sellers seek to supply goods only if they are in great demand.

4) According to the law of supply, a rise in prices tends to reduce supply.

5) If prices for a particular commodity rise, producers will curtail (reduce) its production.

Study the different meanings of the following words and use them to translate the sentences.

1) The office will supply all necessary information.

2) Oil is in short supply.

3) Supply meets the demand.

4) Supply is “elastic” if it can be increased or decreased rapidly in response to market prices.

5) The Seller guarantees that the equipment supplied is manufactured in full conformity (соответствие) with the description given in the technical documentation.

6) The suppliers haven’t effected delivery.

7) Supplies are adjusted to current demand.

b)

1) Не can offer по explanation.

2) They have been offered a new job.

3) He made an offer of £ 40 for it.

4) Most foodstuffs arc offered for sale as quickly as possible.

5) The total quantity of the goods the Sellers have to offer this year is limited.

6) I can only offer my apologies.

7) We can offer a two-year guarantee from the date of delivery.

Express your point of view on the following statements.

1) What effect do consumers have on the economy when they increase or decrease the amount of their purchases?

2) Companies watch for changes in lifestyle of people having in mind (иметь в виду) that people today place value on doing things quickly and easily. Give examples of such goods.

3) The more goods producers sell in a market, the better off (богаче) are consumers.

4) What will happen if the domestic quantity demanded declines but the domestic quantity supplied increases?

Изменение предложения

Study the words and the word-combinations.

1.  Read the text and assimilate its information [6, с. 37—40].

A Change in Supply

A change in supply is a change in the relationship between the price of a good and the quantity supplied in response to a change in a supply determinant other than the price of the good. Among the important changes in economic conditions that can cause changes in supply are:

1. Changes in the prices of the inputs necessary to produce and sell a good.

The profit possible at any given price depends on the prices a seller must pay for the economic resources to produce a good. Increases in input prices and transaction costs associated with selling the good result in less profit for selling any given quantity. This decreases the supply of the good. Conversely, a decrease in input prices would increase the profitability of selling the good and result in an increase in supply.

2. Changes in the technology available to produce the good.

Improvements in technology tend to increase the output from economic resources used to produce a good. Assuming that input prices are unchanged, advances in technology lower the cost per unit of output and tend to increase the profit possible from selling the product at various prices.

3. Changes in the prices of other goods that can be produced with the seller's resources.

The opportunity cost of producing and selling any one good is the sacrifice of the opportunity to sell some other good. Changes in the prices of alternative goods change the opportunity cost of producing a given good, resulting in changes in its supply.

4. Changes in the number of sellers serving the market.

An increase in the number of sellers increases the supply of a good. The number of sellers in the market changes with the profitability of producing the good.

The supply of particular goods can be affected by weather, taxes, subsidies and expectations about future prices of goods and services and inputs.

NOTE:

the cost per unit of output — затраты на изготовление единицы продукции

2.  Answer these questions basing your answers on the text:

1) What is a change in supply caused by?

2) How do changes in input prices influence the supply of a particular good?

3) What is the effect of advances in technology on producing goods?

4) How do changes in prices of other goods affect changes in the supply of a given good?

5) When does the number of sellers serving the market change?

Say whether these statements are true or false, and if they are false, say why?

1) Producers allocate resources in the most efficient way to meet the desires of consumers.

2) Sellers use the resources to generate (производить) the highest possible profit.

3) An improvement in technology or a reduction in input prices will increase the quantity supplied.

4) At a lower price producers offer a larger quantity of products for sale; at a higher price they offer fewer products for sale.

5) Increases in price decrease the quantity supplied.

6) If supply of a given good exceeds its demand, business responds by lowering the price.

7) The price of a given good increases if the price of alternative goods decreases.