Can the Purchase Be Delayed?
Date: 2015-10-07; view: 561.
VII. Write one word in each gap to complete the sentences.
1. When we talk about the “demand” for a ______, we mean more than the desire to simply have or to own the item.
2. In order for demand to be counted in the marketplace, desire must be coupled with the ability and ______ to pay for a product or service.
3. Elasticity tells us how a dependent variable, such as quantity demanded, ______ to a change in an independent variable, such as price.
4. A decrease in demand ______ as a shift to the left.
5. What might cause a change in _____ for CDs?
6. At a price of $15, for example, _____ are now willing to buy 10 CDs instead of 6.
7. When this information is transferred to the graph, the demand ______ appears to have shifted to the right.
8. When demand changes, a new schedule or curve must be constructed to reflect the new _____ demanded at all possible prices.
9. Elasticity is a general _____ that can also be applied to other measures such as income or supply.
10. The way people think about the future can _____ demand.
VIII. A. Read the text. Number the following words with their underlined equivalents in the text.
| customers | substitutes | plummet | considerable | postpone | trends | obtain |
| significant | response | search | a rise | refer | demand | deflect |
Persons with diabetes need insulin to control the disorder. An increase in its price is not likely to make diabetes sufferers delay buying and using the product. The demand for tobacco also tends to be inelastic because the product is addictive. As a result, a sharp increase in price will lower the quantity purchased by consumers, but not by very much. The change in quantity demanded is also likely to be relatively small for these products when their prices go down instead of up. If the products were corn, tomatoes, or gasoline from a particular station, however, people might react differently to a price change. If the prices of these products were to increase, consumers could delay buying any of these items without suffering any great inconvenience. The table after the textsummarizes some of these observations. If the answer to the question “Can the purchase be delayed?” is yes, then the demand for the product is likely to be elastic. If the answer to the question is no, then demand is likely to be inelastic.