Pre-reading Activities. 1. Mind the pronunciation of the following words

1. Mind the pronunciation of the following words. Learn this vocabulary.

increase (n) - ['inkri:s] – увеличение, рост

increase (v) - [in'kri:s] – возрастать, усиливаться

decrease (n) - ['di:kri:s] – уменьшение, спад

decrease (v) - [di'kri:s] – уменьшаться, сокращаться

equal (adj) - ['i:kwəl] – равный, тождественный

equal (v) - ['i:kwəl] – быть одинаковым, равным

Use one of the words from Task 1 to complete the sentences. Mind grammar forms.

1. Our company provided … employment opportunities.

2. We divided the profits into three … shares.

3. Unfortunately, sales … by five percent this year.

4. They will soon … the price from $50 to $60.

5. These changes will … our expenses.

6. His salary … mine.

Reading

Read the text and single out the following notions:

· a competitive market

· the law of demand

· the law of supply

A market is defined as a group of buyers and sellers of a particular product or service. Competitive markets are markets with many buyers and sellers, so that each has a very small influence on the price. Supply and demand is the most useful model for a competitive market, and shows how buyers (citizens) and sellers (businesses) interact in that market.

The first thing to understand is that demand is not the same as desire, or need, or want. When desire is supported by the ability and willingness to pay the price, it becomes an effective demand and has an influence in the market.

Demand, in economics, may be defined as “the quantity of the commodity which will be demanded at any given price over some given period of time”. According to the law of demand, price has a significant effect on demand. Consumers will buy less at higher prices and more at lower prices.

Among the factors which influence consumers to buy more or less of a product, even when the price of the product does not change are:

· Income

· Tastes and preferences

· Substitutes

· Complementary goods

Supply is not the same thing as “amount available”. We are only concerned here with the amounts actually brought to market and these amounts depend on the ruling market price. The basic law of supply says “More will be supplied at a higher price than at a lower price”. An increase in price usually means that production will become more profitable. In addition, an increase in price would tend to encourage new firms to enter the industry.

In addition to price, there are other factors that will strongly influence the amount of a good or service supplied to the market:

· Number of producers

· Resource prices

It is possible for supply and demand to be equal. In this case, the amount of supplied products or services must equal the demand for those products and services. If this relationship between supply and demand is attained, the economy is balanced in a state of equilibrium.

Remember!

Pre-reading Activities. 1. Mind the pronunciation of the following words - student2.ru If supply continues to increase and demand softens (or even remains constant), prices will continue to fall.

Comprehension Check

1. Answer the questions.

1. What is a market? What is a competitive market?
2. What does “supply and demand” model show?

3. When does desire become an effective demand?

4. Do prices have any effect on demand? Why?

5. What factors influence consumers to buy more or less of a product?

6. What do the basic laws of demand and supply say?

7. What influences the amount of a good or service supplied to the market?

8. Is it possible for supply and demand to be equal? In what case?

2. Complete the following statements.

1. Buyers and sellers in a competitive market … .

2. … is not the same as desire.

3. “The quantity of the commodity which will be demanded at any given price over some given period of time” is … .

4. According to the law of demand, consumers … .

5. Production will become more profitable if … .

6. A state of equilibrium is … .

3. Do you agree with the following statements? Use the given vocabulary to explain your choice.

In my opinon, … (на мой взгляд…)

It would be more correct to say that … (было бы правильнее сказать, что…)

I’m afraid, I disagree with… (боюсь, я не согласен с…)

1. Supply and demand is a model for a competitive market, which shows how buyers and sellers influence prices.

2. Demand is the ability and willingness to pay the price.

3. According to the law of demand, price has a great influence on demand.

4. More goods will be supplied at a higher price than at a lower price.

5. If supply and demand are equal, the economy is balanced in a state of equilibrium.

Vocabulary Focus

1. Match the words from Key Vocabulary with definitions:

a) any written rule or collection of rules

b) a person who sells

c) to achieve or accomplish

d) to give some money in exchange for something

e) a particular or indefinite amount of anything

f) a person who buys commodities or services

2. Look through the text and find the equivalents or synonyms of the following words.

goods n

affect v

cooperate v

consumer n

beneficial adj

3. Use the vocabulary of the text to complete the sentences. Guess the suitable word by the first letter.

1. You need a degree to be c… in today's job market.

2. I completely s… your decision to buy new equipment.

3. He thinks that the new regulations will e… people to invest.

4. The car can a… a top speed of 200 km/h.

5. These two chemicals i… with each other at a certain temperature.

6. The boss is worried about q… as well as quality.

Talking Points

1. Do you know the difference between needs and wants, goods and services? Match each item correctly. Write the letter in the blank and give your own examples of:

_____1. Needs

_____2. Wants

_____3. Goods

_____4. Services

_____5. Market

A. Works that are performed for someone.

B. Basic requirements for survival.

C. Location or other mechanism that allows buyers to exchange economic products.

D. Means of expressing needs.

E. Tangible commodities.

2. Suppose that there has been a decline in the price of pork (свинина). What effect will this have on the market for beef (говядина)?

3. Which of the following provides an example of complementary goods? Think of your own examples of complementary goods.

a) Pepsi and Coca-Cola

b) French fries and ketchup

c) Milk and orange juice

d) Beef and pork

Summary Points

1. Identify the main idea of the text “Demand and Supply”.

2. Divide the text into logically completed parts and make up a plan of this text.

3. Describe each point of your plan using phrases from Summary Points (Units 1-4). Use some other words and expressions to show the logical connection between the parts of the summary:

On the one hand,… On the other hand, …	С одной стороны…; с другой стороны
It should be mentioned that …	Следует отметить, что …
The author comes to the conclusion…	Автор приходит к выводу …
On the whole…	В целом …
In brief …	Вкратце, в двух словах …
Thus …	Таким образом, итак …
After reading the text (article, passage) we realize the fact that …	Прочитав текст (статью, отрывок), мы понимаем (убеждаемся), что …