Ex.2. Answer the following questions

1) What is “demand”?

2) What is the current theory of demand based on?

3) What prominent economists contributed to the development of the theory

of demand?

4) How is it possible to show the interrelation of price and quantities

consumed?

5) What is “Giffen effect”?

6) What is Vehien effect?

7) What are increases or decreases in demand?

8) What does the shift to the right of the demand curve mean?

9) What are possible causes of the process?

10) What does the shift to the left of the demand curve mean?

11) Are there exceptions to the general rule?

12) How does price expectation affect demand?

Ex.3. Translate into Russian:

1. Much economic analysis focuses on the relation between prices and

quantities demanded. 2. Marshall viewed demand in a cardinal context, in which utility could be quantified. 3. Consumption or demand is primarily, but not exclusively, a function of prices. 4. With price on the vertical axis and quantity on the horizontal axis, the demand curve slopes downward from left to right.5. Innumerable studies of demand in actual markets having demonstrated the existence of downward-sloping demand curve. 6.Changes in demand are shifts or movements of the entire demand curve. 7. Inferior goods are those goods and services bought in smaller amounts as consumer incomes rise. 8. In an uncertain economy, especially an inflationary one, price expectation can affect demand.