Ex.9. Read the text and choose the best option.
Date: 2015-10-07; view: 474.
Ex.8. Choose and combine two parts logically to make complete sentences.
| 1. | Under conditions of competition, where no one has the power to influence or set price, | a | is known as the supply relationship. |
| 2. | If all three conditions are not met | b | no household has a significant impact on the market. |
| 3. | Because the household is such a small unit | c | some products may be more essential to the consumer. |
| 4. | Economists refer to the behavior of sellers | d | then the demand is not real. |
| 5. | The correlation between price and how much of a good or service is supplied to the market | e | if a slight change in price leads to a sharp change in the quantity demanded or supplied. |
| 6. | Producerssupplymoreat a higherprice | f | because they have few if any substitutes. |
| 7. | A good or service is considered to be highly elastic | g | in which changes in price witness only modest changes in the quantity demanded or supplied. |
| 8. | Elasticity varies among products because | h | as the market force of supply. |
| 9. | An inelastic good or service is one | i | the market (everyone, producers and consumers together) determines the price of a product. |
| 10. | Unique goods such as diamonds are inelastic | j | because selling a higher quantity at a higher price increases revenue. |
The supply/demand theory (1) ________ the paradox of inessential-but-expensive diamonds and cheap-but-essential water. The supply-and-demand theory tells us that diamonds are highly priced because they are (2) ________. There are objectively (3) ________of them relative to demand. If diamonds were as (4) _______ as gravel we would use them to pave our garden walks. More precisely, the (5) ________ point in the market for diamonds is reached at a high price per ounce. Recall that at the equilibrium point the supply and demand curves the paradox the quantity demanded (6) ________ the quantity supplied. Diamonds become more (7) ________ to produce as more are produced. Consequently, the supply curve slopes up: producers want a higher price (to cover their (8) ________ cost) if they have to produce more. The price is in equilibrium determined at the (9) ________ of supply and demand. Given the unique supply/demand circumstances in this market (people badly want diamonds and diamonds are costly to produce) the intersection (10) ________ at a high price. If the demand curve were to fall back towards the origin, the price would fall.
1. a) solves b) decides c) manages d) proves
2. a) deficit b) scarce c) rare d) seldom
3. a) little b) few c) many d) much
4. a) common b) typical c) useful d) particular
5. a) equality b) proper c) equilibrium d) necessary
6. a) equals b) is c) will be d) becomes
7. a) expensive b) precious c) valuable d) costly
8. a) raising b) increasing c) rising d) improving
9. a) intersection b) point c) place d) interaction
10. a) happens b) becomes c) is d) occurs
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| Ex.7. Complete the following sentences with prepositions or adverbs. | | | Ex.10. Look through the text again and replace the words /phrases in italics with similar ones. |