English (Changes in consumer demand)

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Uploaded: 14.05.2014
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Changes in consumer demand
Increases or decreases in demand are changes in the quantities that would be bought at any of the possible array of prices. Changes in demand are shifts or movements of the entire demand curve. A shift to the right means an increase in demand. It can come from any one or a combination of the following: a change in consumer desire or taste, sometimes augmented by volumes of advertising; a rise in consumers income; a rise in the prices of substitutes; or a fall in the prices of complements. Of course, opposite changes in these factors cause a decrease in demand, i.e. a leftward shift of the entire demand curve. An exception here applies to inferior goods1, which are defined as those goods and services bought in smaller amounts as consumer incomes rise.
In an uncertain economy, especially an inflationary one, price expectation can affect demand. For storable commodities2, when consumers believe that expected future prices will be higher, buyers tend to increase their current demand and thus tend to make their expectations self-fulfilling3.
The demands for durable goods4 can fluctuate widely over time, as consumers´ incomes vary. A durable good has both a stock demand5 and a flow demand6. The stock demand is for the amount that consumers want to hold over a period of years. The flow demand in a given year consists of replacement demand7, i.e.8, for purchases to maintain the stock at some level, and of expansion demand, i.e., for purchases to increase the stock.

1. Ответьте на следующие вопросы к тексту.
1. What are increases or decreases in demand?
2. What does the shift to the right of the demand curve mean?
3. What are possible causes of the process?
4. What does the shift to the left of the demand curve mean?
5. How does price expectation affect demand?
6. What is said about demand fluctuations?

2. Найдите русские эквиваленты к следующим английским словосочетаниям.
1. Array of prices.
2. Increase in demand.
3. A fall in the prices of complements.
4. Price expectation.
5. Current demand.
6. Replacement demand.

3. Укажите, какие утверждения не соответствуют содержанию текста и исправьте их.
1. Increases or decreases in demand are changes in the quantities that would be bought at any of the possible array of prices.
2. A shift to the right means a fall in demand.
3. A decrease in demand is a leftward shift of the entire demand curve.
4. The demand for durable goods remains stable over time.

4. Заполните пропуски предлогами.
1. Changes ... demand are shifts or movements ... the entire demand curve.
2. Inferior goods are those goods and services bought ... smaller amounts as consumer incomes rise.
3. ... an uncertain economy, especially an inflationary one, price expectation can affect demand.
4. The stock demand is ... the amount that consumers want to hold ... a period ... years.

5. Найдите в тексте определения следующих понятий.
1. Increases or decreases in demand.
2. Changes in demand.
3. A shift to the right.
4. A leftward shift of the entire demand curve.
5. Inferior goods.

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