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The Shape and Position of Supply Curves In competitive markets the shape, or elasticity of supply, reflects time in the production process, such as the immediate or market period, the short run, and the long run. Elasticity of supply is the relative change in price that induces a relative change in quantity supplied. The supply curve is a line on a diagram where the vertical axis measures price and the horizontal axis is quantity. Usually the coefficient of elasticity is positive, meaning that a rise in price induces an increase in the quantity supplied. In the immediate or market period, a given moment, time is defined as too short to allow for a change in output. The supply curve is vertical, and the coefficient of elasticity is zero. The short run is defined as a period sufficiently long to permit the producer to increase variable inputs, usually labor and materials, but not long enough to permit changes in plant and equipment. The supply curve in the short run is less inelastic or more elastic than in the immediate period. The long run permits sufficient time for the-producer to increase plant and equipment. The longer the time, the greater the elasticity of supply. Changes in supply are shifts in the position of supply curves. An increase in supply is a rightward movement of a supply curve, with more of the commodity being offered for sale at each possible price. Conversely, a decrease in supply shifts the supply to the left. An increase in supply can occur because sellers expect lower prices in the future, or, as in the agricultural sector, because of bountiful crops. The reverse is true of a decrease in supply. Over periods of time long enough for production processes to change, improvements in technology and changes in input prices and productivities are the main causes of changes in supply. VOCABULARY aggregate supply — совокупное предложение complex — сложный, комплексный forthcoming — предстоящий, ожидаемый opportunity costs - альтернативные издержки accountant - бухгалтер explicit — явный, откровенный implicit - подразумевающийся to calculate - подсчитывать, вычислять, рассчитывать for(e)go - предшествовать(по времени или в пространстве) to convert - обращать, преобразовывать shape — форма given moment - данный момент sufficiently - достаточно, в достаточной мере to permit - позволять, разрешать variable - переменный, изменчивый a variable - переменная rightward movement — движение вправо conversely — наоборот bountiful crops - обильный урожай General understanding:
1. Which of the following is not true: A. Supply is a concept of macroeconomics. B. Economists differ from bookkeepers and tax-gatherers because they include also opportunity costs. C. The shape of the supply curve provides specialist with the information on elasticity of supply and the reflection of the shareholder. D. The supply curve is a line on a diagram where the vertical axis measures price and the horizontal axis is quantity. E. Bountiful crops is a cause of increase in supply, F. Improvements in technology and changes in input prices and productivities are the main causes of the changes in elastic demand. 2. Find equivalents in Russian: a) fundamental concept b) current prices c) business costs for wages, d) sole proprietor e) alternative investment projects. f) coefficient of elasticity g) a decrease in supply h) improvements in technology 3. Find antonyms for the following words. Write one sentence with each: a) expected — b) complex — c) possible — d) future — e) competitive — 4. Find the synonyms of the following: a) accountant — b) calculate - c) permit — d) expect — e) complex — f) opportunity — g) businessman – 5. Define the following terms in English: a) aggregate supply b) opportunity costs c) sole proprietor d) elasticity of supply e) coefficient of elasticity Questions for discussion:
Текст №14 Channels of marketing Individual consumers and corporate/organizational buyers are aware that thousands of goods and services are available through a very large number of diverse channel outlets. What they may not be well aware of is the fact that the channel structure, or the set of institutions, agencies, and establishments through which the product must move to get to them, can be amazingly complex. Usually, combinations of institutions specializing in manufacturing, wholesaling, retailing, and many other areas join forces in marketing channel arrangements to make possible the delivery of goods to industrial users or customers and to final consumers. The same is true for the marketing of services. For example, in the case of health care delivery, hospitals, ambulance services, physicians, laboratories, insurance companies, and drugstores combine efforts in an organized channel arrangement to ensure the delivery of a critical service. All these institutions depend on each other to cater effectively to consumer demands. Therefore, marketing channels can be viewed as sets of interdependent organizations involved in the process of making a product or service available for use or consumption. From the outset, it should be recognized that not only do marketing channels satisfy demand by supplying goods and services at the right place, quantity, quality, and price, but they also stimulate demand through the promotional activities of the units (e.g., retailers, manufacturers' representatives, sales offices, and wholesalers) comprising them. Therefore, the channel should be viewed as an orchestrated network that creates value for the user or consumer through the generation of form, possession, time, and place utilities. A major focus of marketing channel management is on delivery. It is only through distribution that public and private goods can be made available for consumption. Producers of such goods (including manufacturers of industrial and consumer goods, legislators framing laws, educational administrators conceiving new means for achieving quality education, and insurance companies developing unique health insurance coverage) are individually capable of generating only form or structural utility for their «products». They can organize their production capabilities in such a way that the products they have developed can, in fact, be seen, analyzed, debated, and, by a select few perhaps, digested. But the actual large-scale delivery of the products to the consuming public demands different types of efforts which create time, place, and possession utilities. In other words, consumers cannot obtain a finished product unless the product is transported to where they can gain access to it, stored until they are ready for it, and digested, exchanged for money or other goods or services so that they can gain possession of it. In fact, the four types of utility (form, time, place, and possession) are inseparable: there can be no «complete» product without incorporating all four into any given object, idea, or service. VOCABULARY diverse — разнообразный insurance companies — страховые компании to be aware of — остерегаться чего-либо to ensure — обеспечивать channel structure — структура канала как... can be viewed as — могут быть рассмотрены, establishment — установление, учреждение interdependent – взаимозависимый to join — (при)соединять(ся) orchestrated network — слаженная сеть health care delivery – оказание медицинских услуг legislators - законодатели physician - терапевт to develop — развивать drugstores – аптеки to digest — переваривать General understanding:
1. Which of the following is false:
1. Define the following in English: a) channels of marketing b) channel structure c) channel outlets d) channel arrangement e) marketing channel management 2 Find equivalent in Russian for: a) consumer demand b) ambulance services c) interdependent organizations d) network e) public and private goods f) four types of utility 3. Use the following to write sentences on channels of marketing in the sphere which is of interest and importance to you: a) can be viewed as. ... b) to be well aware of ... c) to make smth. possible d) it should be recognized as ... e) a major focus of ... is on ... 4. Summarize the text in 8-10 sentences. Use the word patterns of the text. Dwell on the strong and weak points of the theory. Questions for discussion:
Словарь слов и словосочетаний используемых в текстах Таблица 22
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