Comprehension Check. 1. Answer the questions

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.