2020-06-29
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Reading for content information: Read the text and learn about the factors that explain the relationship between price and quantity demanded.
Constructing comprehension (Determining cause and effect): Use the cause-and-effect diagram below to help you take notes as you read the text. Think about how price changes affect the amounts of goods people buy.
Answering text content questions orally:
1. What is the market place?
2. Who answers WHAT?, HOW? and FOR WHOM? questions in a market economy?
3. How are the prices set in a market economy?
4. How does the principle of voluntary exchange operate in a market economy?
5. What is demand in economic terms?
6. What does the law of demand state?
7. What factors can explain the inverse relation between price and quantity demanded?
8. What concept is known as the real income effect?
9. What principle is called the substitution effect?
10. What is defined by the term “utility”?
11. When is marginal utility diminished?
12. How do the real income effect, the substitution effect and diminishing marginal utility relate to the law of demand?
Taking notes: Answer the same questions in writing. Use note form.
Recalling the Facts: Fill in the blanks using the words from the box.
| Law of Demand, real income effect, diminishing marginal utility, quantity demanded,utility, substitution effect, marginal utiliy |
According to the 1_ ______, more people will buy more of an item if the price is lowered. There is an inverse relationship between price and 2 _______. When one goes up the other goes down. There are three other reasons that people will adjust the amount they are willing to buy.
First, 3 _______means that if a person’s real income decreases he or she will purchase less. If real income goes up, people will purchase more.
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Second, 4_ ______says that people may substitute one item for another. This will happen if there are two items that satisfy the same need, and their 5 _______cost is about the same. If the price of one falls, people will most likely buy it instead of the other good.
Finally, 6 _______affects how much people will purchase. You purchase things in order to receive satisfaction. The term that economists use for satisfaction is 7 _______. A cold soft drink at a baseball game on a hot day provides utility. You expect to receive satisfaction from each additional drink. But the amount of additional satisfaction, or 8 _______, diminishes, or lessens, with each additional cup.
Rendering the text:
1. Render the text into English in writing using the base-text for self-correction.
2. Get prepared to render the text orally.
В условиях рыночной экономики покупатели и продавцы определяют цену. Все вместе потребители помогают определить цену товаров и услуг через спрос. Решения потребителей предопределяют, какие продукты будут проданы и за сколько. Люди, продающие товары, также решают, сколько продать и по какой цене. Это называется предложением. Свободные отношения между покупателями и продавцами и отражает рынок. Рынок может быть местным, национальным, мировым.
В условиях рыночной экономики покупатели и продавцы сами решают, как ответить на экономические вопросы ЧТО?, КАК? и ДЛЯ КОГО? Покупатели и продавцы свободны в своем выборе в условиях рыночной экономики. Их решения представляют принцип добровольного обмена.
