Файл: Lilia Raitskaya Stuart Cochrane.docx

Don't forget, though, that other things affect demand apart from price. For example, during a very cold winter, demand for heating fuel like gas or coal will rise at any price. If the winter is unusually warm, then demand for fuel will tall Keononiisls say that these situations cause a shift in the demand curve You can see this in iigure 2.

The Demand Curve

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Quantity OtnuiwM

In figure 2.the curve is still the same shape because puce still has the same effect on demand. However, something else has caused a general increase in demand at all prices. A rise or fall in people's incomes, fashion, climate and many othei tilings can intluence demand in this way.

figure 1

The Demand Curve

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figure 2

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Now read the text again and decide whether these statements are true or false.

The law of demand is easy to understand.

The law of demand says that when people want more of something, its price rises.

There are no exceptions to the law of demand.

Price elasticity shows how much prices change when demand changes.

There are many reasons why people decide to buy something, not only price.

A shift in demand changes the shape of the demand curve.

Before you listen

Discuss the following with your partner.

The graph below shcrws one of the basic relationships in economics: supply and demand.

Talk about the graph with your partner.

Can you label the diagram with the words from the box?

F Listening

Now listen and check if you were right.

• Amount bought and sold

• Demand curve ■ Equilibrium point

• Price ■ Supply curve

Supply and Demand

tD/FD

tD/fD tD/fD

tD/fD

tD/fD tD/fD

A 3.

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G Speaking

Discuss these questions with your partner.

Apart from price. what other things affect demand for a product or service?

If you were a producer, how would you react to increases, or the opposite - decreases m demand?

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What products or services are most in demand in your country now?

Task

Give a two-minute talk on the relationship between demand and supply.

First, read text 2 again and look at the diagram for exercise F Listening.Then make notes on the following:

the law of demand and the reasons for changes m demand

the supply curve and the reasons for it

how the market takes into account the needs of producers and consumers

Pronunciation guide

Econometrics ik^nivnu-trik Variable Че-эилЫ Empirical mipmkl Curve k'i:\ Necessity vsoti Elasticity i:l&*4ti>oii Fuel I |u:ol.

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И H Writing

With a partner, look at the supply and demand charts for ice cream and answer the following questions together.

What do the two charts compare?

What happens to the supply of ice cream as price increases?

-> What happens to demand for ice cream as price increases?

-> What changes m June - supply or demand?

Why do you think there is a shift in demand for ice cream in June?

Report

Now write a short report describing the information in the charts. Organise your report like this.

PARAGRAPH 1

Introduction.Explain briefly what the charts are about and, very generally, what they showBegin like this:Both charts show demand and supply curves for ice cream. The charts also show ...

PARAGRAPH 2

The supply curve.Describe the supply curve for ice cream. Explain the relationship between price and supply. Give example figures from the chart to illustrate your points. Note that the supply curve is the same for both months.Begin like this:The supply curve for both December and June is the same. When production is low. the price ...

PARAGRAPH 3

The demand curve.Describe the general relationship between price and demand. Give example figures from the chart to illustrate your points.

Begin like this:The charts also show that there is a relationship between demand for ice cream and price. Demand rises ...

PARAGRAPH 4

Shift in demand.Describe the difference between the demand curve for December and June. Mention that the equilibrium point is higher in June than in December (give figures'). Give reasons for the shift in demand.Begin like this:However, there is a big difference between the demand curve for December and the demand curve for June .

Natoxllin Ou*4«to Economic» Unit . 13

Write about 220 words

Unit

Before you read

Discuss these questions with your partner.

Imagine a world without money.

How do you think society would be run?

-» Would there be an economy ляwe understand it?

-* Can you think of any examples oi situations where people don't use money, either from the past or now?

Do you know what a traditional economy is?

в A Vocabulary

Choose the correct answer А, В or С from the list below.

Although we can buy meat in the shops, some people still like to animals as a hobby

is another word for extra things

that are not needed.

There are still of people living

traditional lives in the rainforests of South America

In most modern societies like

celebrations and dances have disappeared.

Corn and wheat are two that

farmers grow in their fields.

One of the of playing sports is that

you keep fit.

Ono of the of living in a city is the noise.

Many African countries suffer from regular when no rain falls for months

Heavy rain causes in many parts of

Europe each year.

K.ist Asian countries are well known for their

industries such as computers

and cameras.

Exercises and sports at school are sometimes called education.

1	chase	hunt	eat
2	surplus	В goods	< shortage
3	customs	tribes	pygmies
4	parties	! patterns	customs
3	crops	animals	foods
6	goods	disadvantages	benefits
7	drawbacks	В benefits	customs
8	floods	droughts	hurricanes
9	floods	droughts	hurricanes
10	agricultural	heavy	technology
1 11	physical	mental	< fun

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В Reading 1

The traditional economy

It's hsird to imagine our lives without coins, banknotes ami credit cards. Vet for most of human history people lived without money. For thousands of years human societies had very simple economies There were no shops, markets or traders. There were no employers, paid worki rs or salaries. Today, we call this kind of economy the tmditioiuil п-тинпу.and in some

parts о!" Asia. South America and Africa this system still exists.

People who live in a traditional economy don't have money because they don't need it. They live lives of subsistence. That means they hunt, gather or grow only enough food to live. There is almost no surplus in the traditional economy, and there is almost no property Families may own simple accommodation, but land is shared by all the tribe Flconomie decisions are taken according to the customs of the tribe. For example, every family may need to give some of the crops thev grow to the tribal leader, but keep the rest for themselves. They don't do this because it makes economic sense. They do it because the tribe has always done it. It's simply a custom.

Custom, also, decides what jobs people do in the traditional economy. People generally do (he jobs that their parents and grandparents did liefore them. Anyway, there aren't many jobs to choose from in the traditional economy Men are hunters, farmers or lx>th. The woman's place is at home looking alter children, cooking ami home-making. This division of labour I>et ween men and women is another characteristic of the traditional economy. Whatevei the work is, and whoever does it. you can be sure it's hard work. This is because traditional economies have almost no technology. Physical strength and knowledge ot the environment are the tools for survival.

Like any other economic sy stem, the traditional economy has its benefits and drawbacks Probably the biggest benefit is that these are peaceful societies. People consume almost everything they produce and own practically nothing. They arc equally poor. For all these reasons, war is almost unknown in these societies.

However, people who live in traditional societies are among the poorest people in the work!. Because custom decides what people do, nothing in these societies ever changes, because there is no technology, people depend on nature to survive They have no protection from environmental disasters like droughts and floods. They are always in danger of hunger and disease.

Hut the traditional economy is in danger itself. There are only a few examples left on the planet In lot) years from now, it may have disappearediorc\ er

Now read the text again and match each paragraph with the correct heading.

PARAGRAPH 1

paragr . f !

paragraph 3

paragraph a

paragraph

PARAGRAPH 6

Life without money

The advantages of the traditional economy The future of the traditional economy The disadvantages of the traditional economy The importance of tradition Work in the traditional economy

Before you listen

Discuss these questions with your partner.

What kind of people do you think still live in a traditional economy today?

Where do they live?

What are their lives like?

0 С Listening Щ)))

Now listen and complete the notes about the Mbuti. Use one to three words for each gap. Then listen again and check your answers.

Pygmies

Pygmies live in parts of Africa and

(1)

Pygmies are known for their

(2)

They live in societies that still have a

(3)

The Mbuti

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The Mbuti live in central (4)

They live in houses made from

5. )

6. ) do the hunting.

7. ) build houses.

8. ) look after the children.

Before you read

Discuss these questions with your partner.

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-* Do you think most countries have a market which is free from government management?

Can you think of any examples supporting or disagreeing with this idea⁰

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0 D Vocabulary

Complete each sentence with a word or phrase from the box.

advertise afford competition controlled costs incentive limit prepared profit raise reduce role street market theoretical

! Every Saturday this road becomes the local

. whore people come to buy fruit

and vegetables.

Businesses their products in the

media to attract more customers.

My in the business is to meet

customers and find out what they want.

Making money is the mam to work.

-) I bought tins old camera for €50 and sold it for €78. That's €25

If there's only one producer in the market, there's no

Production are the amount of

money companies spend to make a product.

The idea that life exists on other planets is Nobody knows for sure.

9 A economy is one where a

government decides what can be bought and sold and, or how it is done.

The speed on this road is 90

kilometres per hour.

When there is a demand we prices

but we thorn if we want to sell

something quickly

1 can't that car - it a far too

expensive

People are to pay a lot for services

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if they are of a good quality.

The market economy

iiave- you ever walked through Л busy street market? People push their way through crowds of others in or tier to reach the stalls first The air is full ot deafening shouts. Stall owners yell to advertise their goods. Buyers cry out their orders It's hard to imagine, but behind this noisy confusion is a very logical economic theory llie marketeconomy.

The market economy is sometimes called the /не market.Л free market is not controlled in any way by a government. It is also free from the influence of custom or tradition. In a free market, the only reason why tilings are bought and sold is because there is a demand for them Prices

lor goods and services arc simply what people are prepared to pay. The market economy is not really controlled by anyone. It controls itself.

The street market where we began has many of the characteristics of the free market. Customers arrive at the market with a shopping list of things they need. They also come with an idea of how much they are prepared to pay Stall owners sell what customers demand, and try to gel the highest price they can for it Supply and demand control what is 011 the market and how much it sells lot. In the wider economy, we are all customers, and the stall owners are like companies.

The role of the company inthe free market is to supply what people want. However, companies need an incentive. The incentive is profit There are two ways for companies to make a prolit. The first way is to raise their prices. The second way is to reduce theii production costs. And this brings us totwo more features of the market economy • coinfh'titionand tcclmoloi>\-

Competition exists in a free market because, theoretically, anyone can lx- a producer. This means that companies have to compete with each other for a share of the market Competition is good for consumers because it helps to control prices ami quality If customers aren't happy with a product or service, or if they can't afford it. they will go to a competitor.

Technology exists in a free market because piodueers need ways to reduce their costs. They cannot buy cheaper raw materials. Instead, they must make better use of time and labour Technology is the use of tools and machines to do jobs 111 a better way This helps companies produce more goods in less time and with less effort. I'hc result: more prolit.

People often think that most economics are free markets. However, at the macroeeonomic level, a truly free market economy does not exist anywhere in the world. This is because all governments set limits in order to control the economy. Some governments set many limits, other governments set very few. but they all set some. For this reason, a true market economy is only theoretical. Nevertheless, many of the features of the market economy do exist in most societies todav.

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