1. An event that increases supply causes the supply curve to shift ___1___ and to the ___2___. If the demand curve is not affected, then the equilibrium price will decrease and the equilibrium quantity will go ___3___.
2. An event that decreases supply causes the supply curve to shift ___4___ and to the ___5___. If the demand curve is not affected, the equilibrium will increase and the equilibrium quantity will go ___6___.
3. An event that ___7___ the cost of making a unit will cause the supply curve to shift vertically down. (Note that this is an increase in supply because at the same price, more will be supplied.) An event that ___8___ the cost of making a unit will cause the supply curve to ___9___ vertically up. It is often easier to think of shifts in the supply curve ___10___ of its vertical shift: If Unit costs go up, the supply curve moves up vertically; ___11___, if unit costs go down, the supply curve moves down vertically.
| 1 | A | outward | B | inward | C | in | D | out |
| 2 | A | left | B | right | C | top | D | bottom |
| 3 | A | left | B | right | C | up | D | down |
| 4 | A | out | B | in | C | outward | D | inward |
| 5 | A | left | B | right | C | top | D | bottom |
| 6 | A | left | B | down | C | up | D | right |
| 7 | A | rises | B | develops | C | reduces | D | increases |
| 8 | A | rises | B | develops | C | reduces | D | increases |
| 9 | A | shift | B | curve | C | rise | D | slope |
| 10 | A | in account | B | in terms | C | corresponding | D | In assumption |
| 11 | A | subsequently | B | simultaneously | C | conversely | D | consequently |
XII. Tasks for thought.
1. Which of these goods might be regarded as substitutes for strawberries, and which complements?
a) Raspberries
b) Fresh cream
c) Petrol
d) Ice cream
e) Roast beef
f) Bus journey
g) Lap-top computer
2. Which of these goods would you expect to be normal goods, and which inferior?
a) Colour television
b) Coffee
c) Rice
d) Monochrome television
e) Remould tyres
3. In the figure below the supply curve for tents has moved from S0 to S1. Which of the following could have brought about this move?
Price
 |
Quantity of tents
a) The introduction of a new improved method of producing tents.
b) A fall in the price of a complement to tents.
c) An increase in the wage rate paid to tent workers.
d) An increase in consumers incomes (assume that a tent is a normal good).
e) A fall in the price of a tent component.
XIII. Translate into English.
1. () - , - (, ).
2. , , .
|
|
|
3. -. , , , , .
4. , - .
5. , ( ), , , .. ,
6. .
7. . , .. , .
8. , , .
9. ( ), .
10. (), .
XIV. Translate the following text into English:
1. , , : " , . 2007 , ".
2. , , . , , , . . , , .
3. , , , " ". .
XV. Answer the following questions:
1. A new higher demand curve causes the price to increase. How will the higher price shift the demand curve?
2. If the cost of production goes up, does the supply curve shift to the left or to the right?
3. What is the only factor that changes the quantity demanded (and supplied) but not demand (and supply)?
|
|
|
4. If world demand for wheat goes up and at the same time farmers find a cheaper way to grow wheat, what will happen to wheat prices and output?
