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The Laws of Demand and Supply (Законы спроса и предложения)

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Simple specialization began to take place in primitive cultures as individuals recognized unique abilities in themselves and in others. Specialization led to organized markets where people bought and sold goods, to the use of money, and the increasingly large groups of buyers and sellers. Economists define these organized markets as places or circumstances that bring together buyers and sellers of any goods or services.

What are the motivations of buyers and sellers in the exchange of goods and services in these organized markets? Why do people produce and sell some things at certain prices and do not produce other items? What happens to demand and supply when governments intervene (вмешиваться) in markets through policies such as agricultural price supports and rent controls? The theory of demand and supply- the economist’s basic tool- can give an answer.

In the economic transactions of everyday life, we too enter markets where buyers and sellers meet to buy and sell a great variety of products and services. The typical American supermarket sells thousands of products, and as we go through the store we can see a price system in action. For instance, quantities and prices of fruits and vegetables depend on the quantities consumers want and on the season. Early crops (2) usually bring in the highest prices. It is common for watermelons to sell for more than two dollars a pound in March but only fifteen cents a pound by the Fourth of July.

Why are prices and quantities constantly rising and falling for millions of goods and services in our economy? How do new products find their way to places where buyers and sellers meet? The answers are simple. In a market society, the self-interest of consumers and producers, determines who buys, what, and how much. The primary way that consumers and producers express their self-interest is through the economic laws of demand and supply. In a market system, demand and supply determine prices, and prices are the essential pieces of information on which consumers and sellers make decisions. High watermelon price in March will encourage (3) sellers and discourage (4) consumers, whereas low prices in July will encourage consumers and discourage sellers.

Пояснения к тексту:


to intervene – вмешиваться

early crops – ранний урожай

to encourage – поощрять, поддерживать

to discourage – обескураживать, расхолаживать


V. Ответьте на вопросы:


What did specialization lead to?

What is the economist’s basic tool?

Do demand and supply determine prices in a market economy?


II вариант

Перепишите следующие предложения; подчеркните в каждом из них глагол-сказуемое и определите его видо-временную форму и залог. Переведите предложения на русский язык. Запишите все предложения в вопросительной и отрицательной формах.


1. The population of the United States has shown a steady increase throughout

its history.

2. The price level is rising.

3. The business partners had signed two contracts by the end of the month.

II. Перепишите следующие предложения; подчеркните модальные глаголы

или их эквиваленты. Предложения переведите.

1. Before a consumer can choose between several alternatives, he must receive

offers from producers.

2. The firm had to reduce the number of employees by 2%.

3. The new plant is to be put into operation next year.

III. Перепишите следующие предложения; подчеркните в них

придаточные предложения, укажите их тип (например, бессоюзное

определительное придаточное предложение или дополнительное

придаточное предложение, вводимое союзом that).

1. Statistics, accounting, and mathematics are three areas of knowledge

economists study to gain better insight into their own field.

2. To satisfy individuals we need to know what they really want.

3. The economic technique which discovers individual desires is called the principle of consumers’ choice.

IV. Перепишите и письменно переведите весь текст.

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