LEAD-IN

A system is in equilibrium when the forces constituting it are arranged in such a way as to compensate each other, like the two weights pulling at the arms of a pair of scales.

Unit 4. DEMAND AND SUPPLY

Ex.40. Correct the mistakes if there are any.

1. John is so happy. He graduated from University!

2. When have you graduated from University?

3. One of the worldwide best-selling novelists, Wilbur Smith wrote more than

thirty successful novels. Now, he is working on a new book.

4. Sir Isaac Newton invented calculus.

5. Don’t worry about the letter. I have posted it the day before yesterday.

6. It seems to me that I lost my glasses! I can’t find them anywhere.

7. You’re so absent-minded. By the way, have you finded the gloves that you lost

last week? – No, I bought a new pair the other day.

8. Have you got any money? –Yes, I borrowed it from my brother.

9. Are you tired? –Yes, a little. I painted the ceiling today.

We haven’t seen Peter this week, but we have seen him a couple of weeks ago.

Rudolf Arnheim (1904 – 2007),
German-born author, psychologist.

1. How different are expectations of sellers and buyers in the market? What are these expectations reflected in?

2. How does the market take into account sellers’ and buyers’ needs?

3. How do consumers and producers react to changes in the market?

4. What balances the amount of a product buyers want to buy with the amount sellers want to sell?

5. What do you think is the function of prices? What could happen if there were only fixed prices?

6. What other factors, apart from prices, affect the behavior of suppliers and demanders?