Sypply and Deman

The terms supply and demand refer to the bahaviour of people as they interact
with one another markets. A market is defined as an institution or mehanism which
brings together buyers - demanders and sellers - suppliers .
Demand is the amount of the good that buyers are willing and able to purchase.
What factors determine the demand for any good? They are as following:

Price.The quantity demanded falls as the prices rises and rises as the prices
falls, so the quantity is negatively related to the price. The relationship
between price and quantity demanded is true for most goods in the economy
and, in fact, is so pervasive that economists call it the law of demand: other
things equal (ceteris paribus in Latin), when the price of a good rises, the
quantity demanded of the good falls.
Income.A lower income means that you have less to spend in total so you
would have to spend less on come and probably most goods. If the
demand for a good falls when income falls, the good is called a normal good.
Not all goods are normal goods. If the demand for a goods rises when income
falls, the good is called an inferior good. An example of an inferior good
might be bus rides. As your income falls, you are less likely to buy a car or
take a cab, and more likely to ride the bus.
Prices of Related Goods.Supose that the price of frozen yogurt falls. The
law of demand says that you will buy more frozen yogurt. As the sam time
you will probably buy less ice cream. Ice cream and frozen yogurt are
substitutes, that is pairs of goods that are used in place of each other. When
a fall in one price of one goods raises the demand for another good, the two
goods are called complements. Complements are often of goods that are
used together, such as gasoline and automobiles, computer and software.
Tastes.The most determinant of your demand is your tastes. If you like icecream , you buy more of it.
Expectation.Your expectation about the future may affect for a food or
service today too. We now turn to supply that is the amount that sellers are
willing and able to sell. What determines the quantity and individual
supplies? These are:
Price.Because the quantity supplies rises as the prices rises and falls as the
prices falls, we say that the quantity supplies is positively to the price of the
goods. This relationship between price and quantity supplied is called a law
of supply: Other things equal, when the price of a good rises, the quantity
supplied of the good also rises.
Input Prices.The supply of a good is negatively related to the price of the
inputs used to make the good.
Technology .By reducing firms costs, the advance in technology raises the
supply of a good.
Expectation.The amount of goods you supply today may depend on your
excpetations of the future. For example, if you expect the price of good to
rise in the future, you will put some of your current production into storage
and supply less to the market today.

Ex1. Choose the right word in italics:

1. Do you think a rise in interest rates will affect/effect consumer
spending?
2. Cultural attitude can affect/effect the success of failure of a merger
with an overseas firm?
3. The bad publicity has had and adverse affect/effect on our reputation.
Ex2. Answer the questions on the text.
1. What is a market?
2. What is demand? What does the law of demand says?
3. What factors affect the amount of the good that buyers are willing and
able to purchase?
4. Whats the difference between a normal good and an inferior good?
5. How can you define compliments and substitutes?
6. What is supply ? What does the law of supply say?
7. What factors affect the amount of the good that sellers are willing ann
able to sell?
Ex3. Express in one word?
1. something that is sold for money; goods
2. the desire of customers for goods or services which they wish to buy or
use; demand
3. pairs of goods that are used together; compliments
4. an idea or a principle relating to sth abstract; concept
5. pair of goods that are used in place of each other; substitutes
6. to interact(with sth)? to relate
7. the price to be paid or amount of money needed for sth? costs
8. that which is put in; input
9. the amount of sth that a person or thing produces;
10.
to give sb that is needed or useful/ to provide sb with sth; to
supply
11.
to establish a connection between, e.g. ideas, events or
situations; to think or associate sth with sth else. to act
Word for reference: compliments, concept, demand, goods, substitutes, to
act or have an affect on each other, to relate, output, input, to supply, costs.
Ex4.
1.
2.
3.
4.

Complete the sentences using the words given below.

The government increased prices on several basic.
Computers an software, gasoline and automobiles arecompliments
.for these services is outgoing supply.
The.of demand and supply may be explained in the context of a
market for specific goods.
5. The new model comes in an exciting..colors. range
6. We made a small charge for parking to cover the. of hiring the hall.
7. Supply, the quantity of a product that suppliers will provide, is the
sellers side of a . transaction. market

8. Manufacturing.has increased by 8% in two years.goods

9. They discussed the..of additional resources into the scheme.
concept
Words for reference: input, range, output, concepts, demand,
goods/commodities, market, compliments, cost.

Prevod
Ponuda I tranja
Termini ponude i tranje odnose se na ponaanje ljudi kao i meusobno
delovanje sa drugim tritima. Trite je definisano kao institucija ili
mehanizam koji spaja kupce potraivae i prodavce ponuae.
Tranja je iznos dobra koje su kupci voljni i sposobni da kupe. Koji faktori
odreuju tranju bilo kojeg dobra? To su sledei:
Cena. Traena koliina opada kako cena raste i raste kako cena opada, tako
da je koliina negativno povezana sa cenom. Veza izmeu cene i traene
koliine vai za veinu dobra u ekonomiji i, zapravo, toliko je prodorna da je
ekonomisti nazivaju zakonom tranje: jednako je sa tim da, kada cena dobra
raste, traena koliina dobra opada.
Prihodi. Kada su prihodi niski to znai da ukupno imas manje da troi tako
da bi trebalo da manje troi u veini, na dolazea dobra. Ako tranja za
dobrima opada kada prihodi opadaju, dobro se naziva normalno dobro. Nisu
sva dobra normalna dobra. Ako tranja za dobrima raste kada prihodi
opadaju, dobro se naziva inferiorno dobro. Moemo rei da je vonja
autobusom primer inferirornog dobra. Ako tvoji prohodi opadaju, ti
verovatno nee kupiti auto ili ii taksijem, ve es se voziti autobusom.
Cene slinih(povezanih) dobra. Pretpostavimo da cena zaleenog jogurta
opada. Zakon tranje kae da e kupiti vie zaleenog jogurta. Istovremeno
ti e verovatno kupiti manje sladoleda. Sladoled i zaleeni jogurt su
substituti (zamene), to su parovi dobra koji zamenjuju jedni druge. Kada pad
cene jedne robe povea tranju za drugom robom, obe robe se nazivaju
komplementi (dopuna). Komplementi su esto one robe koje se nadopunjuju
jedno drugo, kao to su benzin i auto, kompjuter i softver.
Ukusi. Ono to najvie odreuje tvoju tranju je ukus. Ako ti se svia
sladoled, kupies vie.
Oekivanje. Takoe u dananje vreme i hrana i usluge mogu uticati na
tvoja oekivanja. Sada smo posveeni (okrenuti ka) ponudi koja je iznos
onoga to su prodavci volji i sposobni da prodaju. ta odreuje koliinu
individualnih zaliha? To su:
Cena. Kaemo da koliina(kvantitet) zaliha deluje pozitivno na cenu jer
koliina zaliha rste kako cena raste, i opada kako cena opada. Ova veza
izmeu cene i koliine zalihe naziva se zakon ponude: Jednako je sa, kada
cena dobra raste, koliina zaliha dobra takoe raste.

Ulazne cene. Ponuda dobra je negativno povezana sa cenom inputa i

koristi se za stvaranje dobra.
Tehnologija. Smanjenjem trokova firmi, dobra se poveavaju napretkom
tehnologije.
Oekivanja. Iznos dobra koje nudi danas, mogu uticati na oekivanja u
budunosti.Na primer, ako oekuje da cena poraste u budunosti, ti e
staviti sadanju robu u magacin i ponuditi manje na tritu.