1… Russia, real income… capita fell… 57 percent… 1998.

2. People must keep their purchases… their incomes, often making hard choices… small budgets.

3. The consumption… ice-cream… Russia is… five times lower than… the USA

4. The sales… the Hungarian drug maker Gedeon Richter fell… $78 million… 1997… $40 million… 1999 as the incomes… Russian people fell dramatically… the crisis… 1998.

5. An increase… the price… an input will result… a reduction in the quantity… that input demanded.

6. How much can be produced… week… each industry depends… how workers are allocated… the industries.

7. The economist is to explain what demand is and how it affects… the market price and quantity.

8. It is not always easy to explain why consumers prefer one good… another, but producers have to examine consumer preferences carefully as they depend… them.

9. We need… a number… elementary things… life, such as food, water and housing. It is veiy difficult to decrease… their consumption when the price increases, that is, demand… them is inelastic.

Аудиторная работа № 2

15. а) Ответьте на вопросы к тексту Theory of Demand.

1. What is consumer demand?

2. What factors influencing consumer demand are assumed constant?

3. What is the principal assumption of the demand theory?

4. Which choice does the consumer have to make?

5. What is marginal utility?

6. How should the consumer allocate his income?

7. How does the marginal utility change as the consumption of a good increases?

8. In what way is the marginal utility connected with price?

9. What is market demand?

10. In what way does market demand differ from individual demand?

б) Подумайте и скажите:

1. In what situation can a buyer prefer to have less rather than more? Has it ever happened to you?

2. Supply an example of marginal utility decreasing as the quantity consumed grows.

16. Выберите подходящее по смыслу слово из предлагаемых в скобках вариантов.

1. An increase in food prices greatly (affects /follows) consumer real income because food is a large part of consumer {expenditure/ budget).

2. An increase in the price of the good j increases the quantity demanded of the good; when the two goods are (substitutes / normal) but reduces the quantity demanded of the good i when the two goods are (additional /complements).

3. We (prefer/ assume) that the consumer always decides that one good is better than, worse than, or as good as another.

4. This model of consumer (expenditure /relationship) can show different behaviour (поведение) of different consumers.

5. The demand theory assumes that the consumer (following/depending) on a budget constraint wants to (vary/ maximize) utility.

6. Importers often must first (follow/obtain) an import licence.

7. Economic development is the process of raising the income (per/within) head of the people of a country.

8. If the level of imports is high, great parts of incomes are spent on the goods produced abroad (that is/rather than) on the goods produced at home.

9. Statistics show that (the budget constraint / the number) of working women with young children is constantly growing in the USA today.

10. Ai increase in consumer expenditure usually (follows/results in) an equivalent rise in the income of consumers.

17. Составьте все возможные словосочетания из слов в левой и правой колонках и переведите их.

additional – utility, demand, substitute, maximization, expenditure, unit, assumption, budget, constraints, relationship

constant, maximum, utility, additional, equal, complementary – expenditure

unit, complementary, maximum, additional, particular, choice – goods