Monday, January 27, 2020
The Fundamental Theory Of Supply And Demand Economics Essay
The Fundamental Theory Of Supply And Demand Economics Essay The theory of supply and demand is perhaps one of the most fundamental concepts of economics and it is the backbone of a market economy. The supply and demand model describes how prices vary as a result of a balance between product availability and consumer demand. Since contemporary economies rely on the market forces of supply and demand instead of government forces to distribute goods and services there must be a method for determining who gets the products that are produced. This is where supply and demand begin to work. By themselves the laws of supply and demand give us basic information, but when working together they are the key to distribution in a market economy. It is not enough for a buyer to want or desire an item. He or she must show the ability to pay and then the willingness to pay. So, demand is comprised of three things: Desire; Ability to pay; Willingness to pay. What factors alter a consumers desire, willingness and ability to pay for products? Some factors include consumers income and tastes, the prices and availability of related products like substitutes or complementary goods, and the items usefulness. Substitutes are goods that satisfy similar needs and which are normally consumed in place of each other. As the price of one substitute declines, demand for the other substitute will decrease. Butter and margarine are close substitutes. If the price of butter goes up, then people will tend to substitute margarine for butter. Complementary goods are those that are normally consumed together (e.g., DVD players and DVD movies). An increase in the price of a product will diminish demand for its complement while a decrease in the price of a product will increase demand for its complement. Think of the items usefulness this way. It is a hot summer day and you are gasping for a drink*. You come across a lemonade stand and gulp down a glass*. It tasted great so you want another. This second glass is marginal utility meaning an extra satisfaction a consumer gets by purchasing one more unit of a product. But now you reach for a third glass. Suddenly your stomach is bloated and you are feeling sick. Thats diminishing marginal utility! The law of diminishing marginal utility says that the more units one buys the less eager one is to buy more. In economics, demand is peoples desire, willingness and ability to purchase particular amounts of goods or services at certain prices in a given period of time. To the economists consumers make rational choices about how much to buy and how to spend their income on the products that will give them the greatest satisfaction at the least cost. So, demand describes the behavior of buyers. The law of demand states that the higher the price of a product, the fewer people will demand that product, that is, demand for a product varies inversely with its price, all other factors remaining equal*. Factors other than a goods price which affect the amount consumers are willing to buy are called the non-price determinants of demand. The law of demand expresses the relationship between prices and the quantity of goods and services that would be purchased at each and every price. In other words, the higher the price of a product, the lower the quantity demanded. Economists like to look at things graphically. A demand schedule is a table showing the number of units of a product that would be purchased at various prices during a given period of time. The information presented in a graphic form is called a demand curve. It shows an inverse relationship between the price and the quantity demanded. The demand curve represents the quantities of a product or service which consumers are willing and able to buy at various prices, all non-price factors being equal. The demand curve slopes downward from left to right based on the law of demand. Or to put it another way, a demand curve shows that the quantity demanded is greater at a lower price and lower at a higher price. The advantage of the curve is that it enables economists to see the relation between price and quantity demanded and to calculate approximately what the demand would be for those prices falling in between the prices that are in the demand schedule. Each point along the curve represents a different price-quantity combination. Demand schedule for cut jeans Price The quantity demanded $400 200 $350 500 $300 800 $225 1200 $175 1600 $100 2400 $50 3000 Increased demand can be represented on the graph as the curve being shifted to the right, because at each price, a greater quantity is demanded. An example of this would be more people suddenly wanting more cut jeans. On the other hand, if the demand decreases, the opposite happens. Decreased demand can be represented on the graph as the curve being shifted to the left, because at each price the quantity demanded is less. It means that fewer people want to buy cut jeans. The key point is to distinguish between demand and the quantity demanded. Demand refers to how much of a product or service is desired by buyers. The quantity demanded is the amount of a product that people are willing to buy at a certain price. The difference is subtle but important. If the demand of ice cream goes up in summer it is because consumptive demand has truly increased, clearly it is hot. In this case the business can most likely raise prices without suffering a cut in sales. This is a change in the quantity demanded. In winter the business incurs a sales fall at the same price. The only way out of increasing sales is to reduce the price. As a result of a price cut the increased sales of ice cream means that consumer demand has artificially been manipulated. In reality, actual demand is low but extra efforts have to be made to increase sales. This leads to a change in demand. Economists distinguish two different ways that the quantity of purchases of a product can change. According to the law of demand a change in price leads to a movement along the original demand curve and results in a change in the quantity demanded, that is, more will be purchased but only at a lower price. When one of the non-price factors changes (e.g., a change in income) there will be a change in demand. This change causes a shift of the demand curve either outward or inward in response to a change in a condition other than the goods price. It means that more or less will be purchased at the same price. All of the non-price determinants (changes in the size of the market, income for the average consumer, population size, the prices and availability of related goods, consumer preferences) are directly related to consumers. In other words, at any given price, consumers will be willing and able to purchase either more or less. Lets take a look at an effect a change in consumer preferences or desire for a particular product leads to. On the one hand, if a product like cut jeans becomes the latest fashion fad, demand at any given price will be increased and the demand curve shifts out. On the other hand, if there is a decline in the size of the market or a product becomes unfashionable then the demand curve shifts in. Thus, the only thing that can change the quantity demanded is a change in the market price, all other things remaining the same. While a change in demand results from changes of any of the non-price determinants, the goods price being equal. To understand better the theory of supply and demand it is necessary to know how much buyers and sellers respond to price changes. This responsiveness is called elasticity. Elasticity varies among products because some products may be more essential to the consumer. A good or service is considered to be highly elastic if a slight change in price leads to a sharp change in the quantity demanded. A price increase of a product or service that isnt considered a necessity will discourage more consumers to buy the product or service. On the other hand, an inelastic good or service is one in which changes in price bring about only modest changes in the quantity demanded, if any at all. Products that are necessities are more insensitive to price changes because consumers will continue buying these products despite a price rise. It is known as the price elasticity of demand. In economics, the price elasticity of demand is an elasticity that measures the nature and degree of the relationship between changes in the quantity demanded of a commodity and changes in its price. One typical application of the concept of elasticity is to consider what happens to consumer demand for a product when prices increase. As the price of a product rises, consumers will usually demand less of that product, perhaps by consuming less, substituting another product for it, and so on. The greater the extent to which demand falls as price rises, the greater the price elasticity of demand is. Demand is called elastic if a small change in price has a relatively large effect on the quantity demanded. The number and quality of substitutes for a product are the basic influence on price elasticity of demand. If the prices of substitutes remain the same, a rise in the products price will discourage consumers from buying this product. On the other hand, if there is a price cut in the product, consumers will substitute other items for this product. Thus, the demand for this product tends to be elastic. In general, demand is elastic for non-essential commodities (visits to theatres or concerts, holidays, parties, etc.) However, there are some goods that consumers cannot consume less of, and cannot find substitutes for even if prices rise. Some goods and services that are necessities, relatively inexpensive and difficult to find substitutes are said to have inelastic demand. To put it another way, a change in price results in a relatively small effect on the quantity demanded. The elasticity of demand also deals with the effect of a price change on the sellers total revenue, that is the amount paid by the buyers and received by the sellers of products. When the price elasticity of demand for a product is elastic, the percentage change in quantity is greater than the percentage change in price. Hence*, when the price is raised, the total revenue of producers falls, and the total revenue of producers rises, when the price is decreased. When the price elasticity of demand for a product is inelastic, the percentage change in quantity is smaller than the percentage change in price. Therefore, when the price is raised, the total revenue of producers rises and the total revenue of producers decreases, when there is a goods price fall. COMMENTS: to gasp for a drink à  ¿Ãƒ  ¾Ãƒ  ¼Ãƒ  ¸Ãƒâ€˜Ã¢â€š ¬Ãƒ  °Ãƒâ€˜Ã¢â‚¬Å¡Ãƒ  ¸ à  ²Ãƒâ€˜-à  ´ Ñ à  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  °Ãƒ  ³Ãƒ  ¸; to gulp down a glass à  ¶Ãƒ  °Ãƒ  ´Ãƒâ€˜-à  ±Ãƒ  ½Ãƒ  ¾/à  ºÃƒ  ²Ãƒ  °Ãƒ  ¿Ãƒ  »Ãƒ  ¸Ãƒ  ²Ãƒ  ¾ à  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒ  ºÃƒ  ¾Ãƒ  ²Ãƒâ€˜Ã¢â‚¬Å¡Ãƒ  ½Ãƒâ€˜Ã†â€™Ãƒâ€˜Ã¢â‚¬Å¡Ãƒ  ¸ à  ½Ãƒ  °Ãƒ  ¿Ãƒâ€˜-à  ¹; all other factors remaining equal à  ·Ãƒ  ° уà  ¼Ãƒ  ¾Ãƒ  ², ц°Ãƒ  ¾ уÑ Ñ- Ñ-à  ½Ãƒâ€˜Ã‹â€ Ñ- Ñ„Ã Â °Ãƒ  ºÃƒâ€˜Ã¢â‚¬Å¡Ãƒ  ¾Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¸ à  ·Ãƒ  °Ãƒ  »Ãƒ  ¸Ãƒâ€˜Ã‹â€ à  °Ãƒâ€˜Ã… ½Ãƒâ€˜Ã¢â‚¬Å¡Ãƒâ€˜Ã…’Ñ Ñ à  ½Ãƒ  µÃƒ  ·Ãƒ  ¼Ãƒâ€˜-à  ½Ãƒ  ½Ãƒ  ¸Ãƒ  ¼Ãƒ  ¸; hence à  ¾Ãƒâ€˜Ã¢â‚¬Å¡Ãƒ  ¶Ãƒ  µ, à  ·Ãƒ  ²Ãƒâ€˜-à  ´Ãƒâ€˜Ã‚ à  ¸, à  ² Ñâ‚ ¬Ãƒ  µÃƒ  ·Ãƒâ€˜Ã†â€™Ãƒ  »Ãƒâ€˜Ã…’Ñ‚Ã Â °Ãƒâ€˜Ã¢â‚¬Å¡Ãƒâ€˜-. Exercise 1. Read, translate into Ukrainian in writing and memorize the following economic terms and concepts. Complementary goods: the two goods tend to be consumed or used together in relatively fixed or standardized proportions. ____________________________________________________________________________________________________________________________________________________________________________ Demand curve: the graphical representation of how demand for something varies in relation to its price. _________________________________________________________________________________________________________________________________ Demand schedule: a table showing the quantities of a product that would be purchased at various prices at a given time. ____________________________________________________________________________________________________________________________________________________________________________ Demand: the level of a consumers willingness, ability and desire or need that exist for particular goods or services. _________________________________________________________________________________________________________________________________ Diminishing marginal utility: each successive increase in consumption of a product or service provides less additional enjoyment or usefulness than the previous one. _______________________________________________________________________________________________________________________________________________________________________________________________________________________ Elastic demand: Demand for which a small change in price results in a large change in demand. _________________________________________________________________________________________________________________________________ Elasticity: An economic concept which is concerned with a shift in either demand for or supply of an economic product as the result of a change in a products price. _______________________________________________________________________________________________________________________________________________________________________________________________________________________ Inelastic demand: Demand for which a large change in price leads to only a small change in demand. ________________________________________________________________________________________________________________________________ Law of demand: the economic law that states that demand for a product varies inversely with its price. _________________________________________________________________________________________________________________________________ Law of diminishing marginal utility: the economic law that states that for a single consumer the marginal utility of a commodity diminishes for each additional unit of the commodity consumed. __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Marginal utility: the additional satisfaction a consumer gains from consuming one more unit of a good or service. ____________________________________________________________________________________________________________________________________________________________________________ Price elasticity of demand: The degree to which demand for a commodity responds to a change in the price of this commodity. ____________________________________________________________________________________________________________________________________________________________________________ Substitute: a product or service that partly satisfies the need of a consumer that another product or service fulfills. _________________________________________________________________________________________________________________________________ Utility: an economic term referring to the total satisfaction received from consuming a good or service. _________________________________________________________________________________________________________________________________ TEXT Transactions require both buyers and sellers. Thus, demand is only one aspect of decisions about prices and the amounts of goods traded, supply is the other. So, supply is one of the two key determinants of price. The theory of supply explains the mechanisms by which prices and levels of production are set. Unlike demand, supply describes the behavior of sellers. In economics, supply relates to the quantity of goods or services that a producer or a supplier is willing to bring into the market (à  ¿Ãƒâ€˜Ã†â€™Ãƒâ€˜Ã‚ Ñ‚Ã Â ¸Ãƒâ€˜Ã¢â‚¬Å¡Ãƒ  ¸ à  ² à  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒ  ´Ãƒ  °Ãƒ  ¶) at a particular price in a given time period, all other things being equal. The law of supply states that the quantity of a commodity supplied (Ñ‚Ã Â ¾Ãƒ  ²Ãƒ  °Ãƒâ€˜Ã¢â€š ¬, Ñ à  ºÃƒ  ¸Ãƒ  ¹ à  ¿Ãƒ  ¾Ãƒâ€˜Ã‚ Ñ‚Ã Â °Ãƒâ€˜Ã¢â‚¬ ¡Ãƒ  °Ãƒâ€˜Ã¢â‚¬ тьѠѠ) varies directly with its price, all other factors that may determine supply remaining the same. The law of supply expresses the relationship between prices and the quantity of goods and services that sellers would offer for sale (à  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒ  ¿Ãƒ  ¾Ãƒ  ½Ãƒâ€˜Ã†â€™Ãƒ  ²Ãƒ  °Ãƒâ€˜Ã¢â‚¬Å¡Ãƒ  ¸ à  ½Ãƒ  ° à  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒ  ´Ãƒ  °Ãƒ  ¶) at each and every price. In other words, the higher the price of a product, the higher the quantity supplied. As the price of a commodity increases relative to price of all other goods, business enterprises switch resources and production from other goods to production of this commodity, increasing the quantity supplied. Clearly the law of supply is the opposite of the law of demand. Consumers want to pay as little as they can. They will buy more when there is a price decrease in the market. Sellers, on the other hand, want to charge as much as they can. They will be willing to make more and sell more as the price goes up. In this way they can maximize profits. (à  ·Ãƒ  ½Ãƒ  °Ãƒâ€˜Ã¢â‚¬ ¡Ãƒ  ½Ãƒ  ¾ à  ·Ãƒ  ±Ãƒâ€˜-à  »Ãƒâ€˜Ã…’шуà  ²Ãƒ  °Ãƒâ€˜Ã¢â‚¬Å¡Ãƒ  ¸ à  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¸Ãƒ  ±Ãƒâ€˜Ã†â€™Ãƒâ€˜Ã¢â‚¬Å¡Ãƒ  ºÃƒ  ¸) The relationship between price of a product and its quantity supplied is represented in a table called a supply schedule. The supply curve is a graphic representation of the market supply schedule and the law of supply. The supply curve shows a direct relationship (à  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒâ€˜Ã‚ à  ¼Ãƒ  ¾ à  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒ  ¿Ãƒ  ¾Ãƒâ€˜Ã¢â€š ¬Ãƒâ€˜Ã¢â‚¬ Ñ-à  ¹Ãƒ  ½Ãƒ  ° à  ·Ãƒ  °Ãƒ  »Ãƒ  µÃƒ  ¶Ãƒ  ½Ãƒâ€˜-Ñ ть) between the quantities of products that firms are willing to produce and sell at various prices, all non-price factors (à  ½Ãƒ  µÃƒâ€˜Ã¢â‚¬ Ñ-à  ½Ãƒ  ¾Ãƒ  ²Ãƒâ€˜- Ñ„Ã Â °Ãƒ  ºÃƒâ€˜Ã¢â‚¬Å¡Ãƒ  ¾Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¸) being constant. The supply curve slopes upward from left to right based on the law of supply. Producers supply more at a higher price because selling a larger quantity at a higher price increases their revenue. Supply schedule for cut jeans Price The quantity supplied $400 3000 $350 2400 $300 1600 $225 1200 $175 800 $100 500 $50 200 The supply curve enables producers to anticipate (à  ´Ãƒ  °Ãƒ  ²Ãƒ  °Ãƒâ€˜Ã¢â‚¬Å¡Ãƒ  ¸ à  ¼Ãƒ  ¾Ãƒ  ¶Ãƒ  »Ãƒ  ¸Ãƒ  ²Ãƒâ€˜-Ñ ть à  ²Ãƒ  ¸Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒ  ±Ãƒ  ½Ãƒ  ¸Ãƒ  ºÃƒ  °Ãƒ  ¼ à  ¿Ãƒ  µÃƒâ€˜Ã¢â€š ¬Ãƒ  µÃƒ  ´Ãƒ  ±Ãƒ  °Ãƒâ€˜Ã¢â‚¬ ¡Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬Å¡Ãƒ  ¸) what the supply would be for those prices falling in between the prices that are in the supply schedule. Each point along the curve represents a different price-quantity combination, or to put it another way, a direct correlation between the quantities supplied and price. Like a movement along the demand curve, a movement along the supply curve will occur when a price change leads to a change in the quantity supplied (à  ·Ãƒ  ¼Ãƒâ€˜-à  ½Ãƒ  ° à  ²Ãƒ  µÃƒ  »Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬ ¡Ãƒ  ¸Ãƒ  ½Ãƒ  ¸ à  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒ  ¿Ãƒ  ¾Ãƒ  ·Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬ Ñ-Ñ-), that is, more will be offered for sale but only at a higher price or vice versa. Like a shift in the demand curve, a shift in the supply curve to the right or to the left means that the quantity supplied is affected by a factor other than a products price. (Ñ„Ã Â °Ãƒ  ºÃƒâ€˜Ã¢â‚¬Å¡Ãƒ  ¾Ãƒâ€˜Ã¢â€š ¬ Ñ-à  ½Ãƒâ€˜Ã‹â€ à  ¸Ãƒ  ¹ à  ½Ãƒâ€˜-à  ¶ цÑ-à  ½Ãƒ  ° Ñ‚Ã Â ¾Ãƒ  ²Ãƒ  °Ãƒâ€˜Ã¢â€š ¬Ãƒâ€˜Ã†â€™) People often confuse supply with the quantity supplied. The difference between supply and quantity supplied is that Supply represents the amounts of items that suppliers are willing and able to offer for sale at different prices at a particular time and place, all non-price determinants being equal. The quantity supplied refers to the amount of a certain product producers are willing to supply at a certain price (à  ·Ãƒ  ° à  ¿Ãƒ  µÃƒ  ²Ãƒ  ½Ãƒ  ¾Ãƒâ€˜Ã… ½ цÑ-à  ½Ãƒ  ¾Ãƒâ€˜Ã… ½). A change in the price of the product will cause a change in the quantity supplied. Price is an important determinant of the quantities supplied. The law of supply states that the amount offered for sale rises, as the price is higher. The quantity of pairs of cut jeans producers are willing to offer for sale rises, since their price is higher primarily because they need to cover the increased costs of production. (à  ¿Ãƒ  ¾Ãƒ  ºÃƒâ€˜Ã¢â€š ¬Ãƒ  ¸Ãƒ  ²Ãƒ  °Ãƒâ€˜Ã¢â‚¬Å¡Ãƒ  ¸ à  ·Ãƒ  ±Ãƒâ€˜-à  »Ãƒâ€˜Ã…’шà  µÃƒ  ½Ãƒâ€˜- à  ²Ãƒ  ¸Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒ  ±Ãƒ  ½Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬ ¡Ãƒâ€˜- à  ²Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬Å¡Ãƒâ€˜Ã¢â€š ¬Ãƒ  °Ãƒâ€˜Ã¢â‚¬Å¡Ãƒ  ¸) Thus, according to the law of supply a change in price leads to a movement along the original supply curve and results in a change in the quantity supplied. On the one hand, an upward movement along the curve (Ñâ‚ ¬Ãƒâ€˜Ã†â€™Ãƒâ€˜Ã¢â‚¬ ¦ уà  ·Ãƒ  ´Ãƒ  ¾Ãƒ  ²Ãƒ  ¶ à  ºÃƒâ€˜Ã¢â€š ¬Ãƒ  ¸Ãƒ  ²Ãƒ  ¾Ãƒâ€˜- Ñ à  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒâ€˜Ã‚ à  ¼Ãƒ  ¾Ãƒ  ²Ãƒ  °Ãƒ  ½Ãƒ  ¸Ãƒ  ¹ уà  ³Ãƒ  ¾Ãƒâ€˜Ã¢â€š ¬Ãƒâ€˜Ã†â€™) represents an increase in the quantity supplied as the price is raised. On the other hand, a downward movement along the curve shows a decrease in the quantity supplied as a result of a price reduction. When one of the factors other than a products price changes (e.g., a change in technology) there will be a change in supply. Economists use the term supply to refer to the original supply curve. An increase in supply is reflected by a shift of the supply curve to the right. It means that at the same price, sellers are willing to supply more than they were willing to supply before (à  ²Ãƒ  ¾Ãƒ  ½Ãƒ  ¸ à  ±Ãƒâ€˜Ã†â€™Ãƒ  »Ãƒ  ¸ à  ³Ãƒ  ¾Ãƒâ€˜Ã¢â‚¬Å¡Ãƒ  ¾Ãƒ  ²Ãƒâ€˜- à  ¿Ãƒ  ¾Ãƒâ€˜Ã‚ Ñ‚Ã Â °Ãƒâ€˜Ã¢â‚¬ ¡Ãƒ  °Ãƒâ€˜Ã¢â‚¬Å¡Ãƒ  ¸ Ñâ‚ ¬Ãƒ  °Ãƒ  ½Ãƒâ€˜-шà  µ). A decrease in supply is represented by a shift of the original supply curve to the left. It means that at any given price, producers are willing to supply less than they were willing to supply before. However, there are things other than price which affect the amounts of goods and services suppliers are able to bring into the market. These things are called the non-price determinants of supply. As it has been mentioned a change in the quantity supplied caused only by a change in the price of the product. A change in supply is caused by a change in the non-price determinants of supply. Based on a new supply schedule (à  ²Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬ ¦Ãƒ  ¾Ãƒ  ´Ãƒâ€˜Ã‚ ц¡Ãƒ  ¸ à  · à  ½Ãƒ  ¾Ãƒ  ²Ãƒ  ¾Ãƒâ€˜- шà  ºÃƒ  °Ãƒ  »Ãƒ  ¸ à  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒ  ¿Ãƒ  ¾Ãƒ  ·Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬ Ñ-Ñ-), the supply curve moves inward or outward since the prices stay the same and only the quantities supplied change. Non-price determinants of supply are: Changes in the cost of production. Production costs relate to the labour costs and other costs of doing business (à  ²Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬Å¡Ãƒâ€˜Ã¢â€š ¬Ãƒ  °Ãƒâ€˜Ã¢â‚¬Å¡Ãƒ  ¸ à  µÃƒ  ºÃƒâ€˜Ã‚ à  ¿Ãƒ  »Ãƒâ€˜Ã†â€™Ãƒ  °Ãƒâ€˜Ã¢â‚¬Å¡Ãƒ  °Ãƒâ€˜Ã¢â‚¬ Ñ-Ñ- à  ¿Ãƒâ€˜-à  ´Ãƒ  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬ à  ¼Ãƒâ€˜Ã‚ Ñ‚Ã Â ²Ãƒ  °) used in production process. The cost of production is probably one of the most important influences on production process. An increase in the costs of any input brings about the lower output, which means that the supply curve will shift inward. Regardless of the price that a firm can charge for its product, price must exceed costs (à  ¿Ãƒ  µÃƒâ€˜Ã¢â€š ¬Ãƒ  µÃƒ  ²Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬ °Ãƒâ€˜Ã†â€™Ãƒ  ²Ãƒ  °Ãƒâ€˜Ã¢â‚¬Å¡Ãƒ  ¸ à  ²Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬Å¡Ãƒâ€˜Ã¢â€š ¬Ãƒ  °Ãƒâ€˜Ã¢â‚¬Å¡Ãƒ  ¸) to make a profit. Thus, the supply decision (Ñâ‚ ¬Ãƒâ€˜-шà  µÃƒ  ½Ãƒ  ½Ãƒâ€˜Ã‚ ц°Ãƒ  ¾Ãƒ  ´Ãƒ  ¾ à  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒ  ¿Ãƒ  ¾Ãƒ  ·Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬ Ñ-Ñ-) is a decision in response to changes in the cost of production. Changes in technology. Changes in technology usually result in improved productivity. Improved technology decreases production costs and therefore increases supply. Changes in the price of resources needed to produce goods and services. If the price of a resource used to produce the product increases, this will increase the production costs and the producer will no longer be willing to offer the same quantity at the same price. He will want to charge a higher price to cover the higher costs. As a result the supply curve will shift inward. Changes in the expectations of future prices. Changes in producers expectations about the future price can cause a change in the current supply (Ñ-Ñ à  ½Ãƒâ€˜Ã†â€™Ãƒâ€˜Ã… ½Ãƒâ€˜Ã¢â‚¬ ¡Ãƒ  ° à  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒ  ¿Ãƒ  ¾Ãƒ  ·Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬ Ñ-Ñ ) of products. If producers anticipate a price rise in the future, they may prefer to store their products today and sell them later. As a result, the current supply of a particular product will decrease. In this case a supply curve will shift to the left. It is necessary to keep in mind that supply is not the quantity available for sale. (à  ºÃƒâ€˜-à  »Ãƒâ€˜Ã…’à  ºÃƒâ€˜-Ñ ть, Ñ à  ºÃƒ  ° Ñ†à  ² à  ½Ãƒ  °Ãƒâ€˜Ã‚ à  ²Ãƒ  ½Ãƒ  ¾Ãƒâ€˜Ã‚ Ñ‚Ñ- à  ´Ãƒ  »Ãƒâ€˜Ã‚ à  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒ  ´Ãƒ  °Ãƒ  ¶Ãƒâ€˜Ã†â€™) Changes in the profit opportunities. If a business firm produces more than one product, a change in the price of one product can change the supply of another product. For example, automobile manufacturers can produce both small and large cars. If the price of small cars rises, the producers will produce more small cars to earn higher profits. They will shift the resources of the plant from the production of large cars to the production of small ones. Therefore, the supply of small cars will increase and a supply curve will shift outward. So, profit opportunities encourage producers to produce those goods that have high prices. Changes in the number of suppliers in the market. Potential producers are producers who can produce a product but dont do it because of relatively low price. If price of a product rises potential suppliers will switch over production to that product to make more profit. If more producers enter a market, the supply will increase, shifting the supply curve to the right. Making a summary it is necessary to emphasize that the understanding of concepts of supply and demand provides an explanation of how prices are determined in competitive markets. (à  ºÃƒ  ¾Ãƒ  ½Ãƒ  ºÃƒâ€˜Ã†â€™Ãƒâ€˜Ã¢â€š ¬Ãƒ  µÃƒ  ½Ãƒâ€˜Ã¢â‚¬Å¡Ãƒ  ½Ãƒ  ¸Ãƒ  ¹ Ñâ‚ ¬Ãƒ  ¸Ãƒ  ½Ãƒ  ¾Ãƒ  º) An important concept in understanding supply and demand theories is elasticity. Comprehension of elasticity (Ñâ‚ ¬Ãƒ  ¾Ãƒ  ·Ãƒâ€˜Ã†â€™Ãƒ  ¼Ãƒâ€˜-à  ½Ãƒ  ½Ãƒâ€˜Ã‚ à  µÃƒ  »Ãƒ  °Ãƒâ€˜Ã‚ Ñ‚Ã Â ¸Ãƒâ€˜Ã¢â‚¬ ¡Ãƒ  ½Ãƒ  ¾Ãƒâ€˜Ã‚ Ñ‚Ñ-) is useful to understand the response of supply to changes in consumer demand in order to achieve an expected result or avoid unforeseen consequences (уà  ½Ãƒ  ¸Ãƒ  ºÃƒ  °Ãƒâ€˜Ã¢â‚¬Å¡Ãƒ  ¸ à  ½Ãƒ  µÃƒ  ¿Ãƒ  µÃƒâ€˜Ã¢â€š ¬Ãƒ  µÃƒ  ´Ãƒ  ±Ãƒ  °Ãƒâ€˜Ã¢â‚¬ ¡Ãƒ  µÃƒ  ½Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬ ¦ à  ½Ãƒ  °Ãƒâ€˜Ã‚ à  »Ãƒâ€˜-à  ´Ãƒ  ºÃƒâ€˜-à  ²). For example, an entrepreneur expecting a price increase might find that* it lowers the profits if demand is highly elastic, as sales would fall sharply. Similarly, a business reckoning on a price cut might find that* it does not increase sales, if demand for the product is inelastic. In economics, the price elasticity of supply is the degree of proportionality with which the amount of a commodity offered for sale changes in response to a given change in the going price. In other words elasticity of supply is a measure of how much the quantity supplied of a particular product responds to a change in the price of that product. Elasticity of supply works similar to elasticity of demand. If a change in price results in a large change in the quantity supplied, supply is considered elastic. On the other hand, if a great change in price brings about a small change in the quantity supplied, supply is called inelastic. Here are the determinants of price elasticity of supply: the ability of producers to change the amount of goods they produce time period needed to alter the output. Elasticity of supply is different in the short run and the long run. The quantity of a product supplied in the short run differs from the amount produced, as manufacturers have stocks of finished products (à  ·Ãƒ  °Ãƒ  ¿Ãƒ  °Ãƒâ€˜Ã‚ à  ¸ à  ³Ãƒ  ¾Ãƒâ€˜Ã¢â‚¬Å¡Ãƒ  ¾Ãƒ  ²Ãƒ  ¾Ãƒâ€˜- à  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒ  ´Ãƒâ€˜Ã†â€™Ãƒ  ºÃƒâ€˜Ã¢â‚¬ Ñ-Ñ- ) as well as raw materials which they have to build up or reduce. In the long run quantity supplied and quantity produced are equal but it takes time to adjust supply to current demand and going prices. For example, supply of many goods can be increased over time by allocating alternative resources, investing in an expansion of production capacity, or developing competitive products that can substitute for hot items. Hence, supply is more elastic in the long run than in the short run. COMMENTS A different price-quantity combination Ñ-à  ½Ãƒâ€˜Ã‹â€ à  ° à  ºÃƒ  ¾Ãƒ  ¼Ãƒ  ±Ãƒâ€˜-à  ½Ãƒ  °Ãƒâ€˜Ã¢â‚¬ Ñ-ѠцÑ-à  ½Ãƒ  ¸ Ñ‚Ã Â ° à  ºÃƒâ€˜-à  »Ãƒâ€˜Ã…’à  ºÃƒ  ¾Ãƒâ€˜Ã‚ Ñ‚Ñ-; an entrepreneur expecting a price increase might find that à  ¿Ãƒâ€˜-à  ´Ãƒ  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬ à  ¼Ãƒ  µÃƒâ€˜Ã¢â‚¬ ÑŒ, Ñ à  ºÃƒ  ¸Ãƒ  ¹ Ñ à  ¿Ãƒ  ¾Ãƒ  ´Ãƒâ€˜-à  ²Ãƒ  °Ãƒâ€˜Ã¢â‚¬ Ñ‚ÑŒÑ Ñ à  ½Ãƒ  ° à  ¿Ãƒâ€˜-à  ´Ãƒ  ²Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬ °Ãƒ  µÃƒ  ½Ãƒ  ½Ãƒâ€˜Ã‚ цÑ-à  ½Ãƒ  ¸, à  ¼Ãƒâ€˜-à  ³ à  ±Ãƒ  ¸ à  ·Ãƒâ€˜Ã‚ Ñ уà  ²Ãƒ  °Ãƒâ€˜Ã¢â‚¬Å¡Ãƒ  ¸, ц°Ãƒ  ¾; a business reckoning on a price cut might find that à  ¿Ãƒâ€˜-à  ´Ãƒ  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬ à  ¼Ãƒ  µÃƒâ€˜Ã¢â‚¬ ÑŒ, Ñ à  ºÃƒ  ¸Ãƒ  ¹ Ñâ‚ ¬Ãƒ  ¾Ãƒ  ·Ãƒâ€˜Ã¢â€š ¬Ãƒ  °Ãƒâ€˜Ã¢â‚¬ ¦Ãƒ  ¾Ãƒ  ²Ãƒâ€˜Ã†â€™Ãƒâ€˜Ã¢â‚¬ à  ½Ãƒ  ° à  ·Ãƒ  ½Ãƒ  ¸Ãƒ  ¶Ãƒ  µÃƒ  ½Ãƒ  ½Ãƒâ€˜Ã‚ цÑ-à  ½Ãƒ  ¸, à  ¼Ãƒâ€˜-à  ³ à  ±Ãƒ  ¸ à  ·Ãƒâ€˜Ã‚ Ñ уà  ²Ãƒ  °Ãƒâ€˜Ã¢â‚¬Å¡Ãƒ  ¸, ц°Ãƒ  ¾. Exercise 1. Read, translate into Ukrainian in written form and memorize the definitions of the following economic terms and concepts. Elastic supply: Supply for which a percentage change in a products price causes a larger percentage change in the quantity supplied. à †¢Ãƒ  »Ãƒ  °Ãƒâ€˜Ã‚ Ñ‚Ã Â ¸Ãƒâ€˜Ã¢â‚¬ ¡Ãƒ  ½Ãƒ  ° à  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒ  ¿Ãƒ  ¾Ãƒ  ·Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬ Ñ-Ñ : à  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒ  ¿Ãƒ  ¾Ãƒ  ·Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬ Ñ-Ñ à  ·Ãƒ  ° Ñ à  ºÃƒ  ¾Ãƒâ€˜- à  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒâ€˜Ã¢â‚¬ à  µÃƒ  ½Ãƒâ€˜Ã¢â‚¬Å¡Ãƒ  ½Ãƒ  ° à  ·Ãƒ  ¼Ãƒâ€˜-à  ½Ãƒ  ° à  ² цÑ-à  ½Ãƒâ€˜- Ñ‚Ã Â ¾Ãƒ  ²Ãƒ  °Ãƒâ€˜Ã¢â€š ¬Ãƒâ€˜Ã†â€™ à  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¸Ãƒ  ·Ãƒ  ²Ãƒ  ¾Ãƒ  ´Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬Å¡Ãƒâ€˜Ã…’ à  ´Ãƒ  ¾ à  ±Ãƒâ€˜-à  »Ãƒâ€˜Ã…’шà  ¾Ãƒâ€˜- à  ·Ãƒ  ¼Ãƒâ€˜-à  ½Ãƒ  ¸ à  ²Ãƒ  µÃƒ  »Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬ ¡Ãƒ  ¸Ãƒ  ½Ãƒ  ¸ à  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒ  ¿Ãƒ  ¾Ãƒ  ·Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬ Ñ-Ñ-. Elasticity of supply: The degree to which supply of a commodity responds to a change in that commoditys price. à †¢Ãƒ  »Ãƒ  °Ãƒâ€˜Ã‚ Ñ‚Ã Â ¸Ãƒâ€˜Ã¢â‚¬ ¡Ãƒ  ½Ãƒâ€˜-Ñ ть à  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒ  ¿Ãƒ  ¾Ãƒ  ·Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬ Ñ-Ñ-: à  ¿Ãƒ  ¾Ãƒ  »Ãƒ  ¾Ãƒ  ¶Ãƒ  µÃƒ  ½Ãƒ  ½Ãƒâ€˜Ã‚ à  ·Ãƒ  ° Ñ à  ºÃƒ  ¸Ãƒ  ¼ à  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒ  ¿Ãƒ  ¾Ãƒ  ·Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬ Ñ-Ñ тà  ¾Ãƒ  ²Ãƒ  °Ãƒâ€˜Ã¢â€š ¬Ãƒâ€˜Ã†â€™ Ñâ‚ ¬Ãƒ  µÃƒ  °Ãƒ  ³Ãƒâ€˜Ã†â€™Ãƒâ€˜Ã¢â‚¬ à  ½Ãƒ  ° à  ·Ãƒ  ¼Ãƒâ€˜-à  ½Ãƒâ€˜Ã†â€™ цÑ-à  ½Ãƒ  ¸ Ñ‚Ã Â ¾Ãƒ  ²Ãƒ  °Ãƒâ€˜Ã¢â€š ¬Ãƒâ€˜Ã†â€™. Inelastic supply: Supply for which a percentage change in a products price causes a smaller percentage change in the quantity supplied. à  à  µÃƒ  µÃƒ  »Ãƒ  °Ãƒâ€˜Ã‚ Ñ‚Ã Â ¸Ãƒâ€˜Ã¢â‚¬ ¡Ãƒ  ½Ãƒ  ° à  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒ  ¿Ãƒ  ¾Ãƒ  ·Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬ Ñ-Ñ : à  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒ  ¿Ãƒ  ¾Ãƒ  ·Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬ Ñ-Ñ à  ·Ãƒ  ° Ñ à  ºÃƒ  ¾Ãƒâ€˜- à  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒâ€˜Ã¢â‚¬ à  µÃƒ  ½Ãƒâ€˜Ã¢â‚¬Å¡Ãƒ  ½Ãƒ  ° à  ·Ãƒ  ¼Ãƒâ€˜-à  ½Ãƒ  ° цÑ-à  ½Ãƒ  ¸ Ñ‚Ã Â ¾Ãƒ  ²Ãƒ  °Ãƒâ€˜Ã¢â€š ¬Ãƒâ€˜Ã†â€™ à  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¸Ãƒ  ·Ãƒ  ²Ãƒ  ¾Ãƒ  ´Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬Å¡Ãƒâ€˜Ã…’ à  ´Ãƒ  ¾ à  ¼Ãƒ  µÃƒ  ½Ãƒâ€˜Ã‹â€ à  ¾Ãƒâ€˜- à  ·Ãƒ  ¼Ãƒâ€˜-à  ½Ãƒ  ¸ à  ²Ãƒ  µÃƒ  »Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬ ¡Ãƒ  ¸Ãƒ  ½Ãƒ  ¸ à  ¿Ãƒ  ¾Ãƒ  ¿Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬Å¡Ãƒâ€˜Ã†â€™. Law of supply: the economic law that states as the price of a commodity that producers are willing and able to offer for sale during a particular period of time rises (falls), the quantity of the commodity supplied goes up (decreases), all non-price determinates being equal. à -à  °Ãƒ  ºÃƒ  ¾Ãƒ  ½ à  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒ  ¿Ãƒ  ¾Ãƒ  ·Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬ Ñ-Ñ-: à  µÃƒ  ºÃƒ  ¾Ãƒ  ½Ãƒ  ¾Ãƒ  ¼Ãƒâ€˜-ц¡Ãƒ  ½Ãƒ  ¸Ãƒ  ¹ à  ·Ãƒ  °Ãƒ  ºÃƒ  ¾Ãƒ  ½, Ñ à  ºÃƒ  ¸Ãƒ  ¹ Ñ тà  ²Ãƒ  µÃƒâ€˜Ã¢â€š ¬Ãƒ  ´Ãƒ  ¶Ãƒâ€˜Ã†â€™Ãƒâ€˜Ã¢â‚¬ , ц°Ãƒ  ¾ Ñ à  ºÃƒâ€˜Ã¢â‚¬ °Ãƒ  ¾ цÑ-à  ½Ãƒ  ° Ñ‚Ã Â ¾Ãƒ  ²Ãƒ  °Ãƒâ€˜Ã¢â€š ¬Ãƒâ€˜Ã†â€™, Ñ à  ºÃƒâ€˜Ã†â€™ à  ²Ãƒ  ¸Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒ  ±Ãƒ  ½Ãƒ  ¸Ãƒ  ºÃƒ  ¸ à  ³Ãƒ  ¾Ãƒâ€˜Ã¢â‚¬Å¡Ãƒ  ¾Ãƒ  ²Ãƒâ€˜- Ñ‚Ã Â ° à  ·Ãƒ  ´Ãƒ  °Ãƒâ€˜Ã¢â‚¬Å¡Ãƒ  ½Ãƒâ€˜- à  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒ  ¿Ãƒ  ¾Ãƒ  ½Ãƒâ€˜Ã†â€™Ãƒ  ²Ãƒ  °Ãƒâ€˜Ã¢â‚¬Å¡Ãƒ  ¸ à  ´Ãƒ  »Ãƒâ€˜Ã‚ à  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒ  ´Ãƒ  °Ãƒ  ¶Ãƒâ€˜Ã†â€™ à  ·Ãƒ  ° à  ²Ãƒ  ¸Ãƒ  ·Ãƒ  ½Ãƒ  °Ãƒâ€˜Ã¢â‚¬ ¡Ãƒ  µÃƒ  ½Ãƒ  ¸Ãƒ  ¹ à  ¿Ãƒ  µÃƒâ€˜Ã¢â€š ¬Ãƒâ€˜-à  ¾Ãƒ  ´ ц¡Ãƒ  °Ãƒâ€˜Ã‚ у, à  ·Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒâ€˜Ã‚ Ñ‚Ã Â °Ãƒâ€˜Ã¢â‚¬ (Ñ à  ¿Ãƒ  °Ãƒ  ´Ãƒ  °Ãƒâ€˜Ã¢â‚¬ ), à  ºÃƒâ€˜-à  »Ãƒâ€˜Ã…’à  ºÃƒâ€˜-Ñ ть à  ·Ãƒ  °Ãƒ  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒ  ¿Ãƒ  ¾Ãƒ  ½Ãƒ  ¾Ãƒ  ²Ãƒ  °Ãƒ  ½Ãƒ  ¾Ãƒ  ³Ãƒ  ¾ Ñ‚Ã Â ¾Ãƒ  ²Ãƒ  °Ãƒâ€˜Ã¢â€š ¬Ãƒâ€˜Ã†â€™ à  ·Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒâ€˜Ã‚ Ñ‚Ã Â °Ãƒâ€˜Ã¢â‚¬ (Ñ à  ºÃƒ  ¾Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒâ€˜Ã¢â‚¬ ¡Ãƒâ€˜Ã†â€™Ãƒâ€˜Ã¢â‚¬ тьѠѠ), à  ²Ãƒâ€˜Ã‚ Ñ- à  ½Ãƒ  µÃƒâ€˜Ã¢â‚¬ Ñ-à  ½Ãƒ  ¾Ãƒ  ²Ãƒâ€˜- à  ²Ãƒ  ¸Ãƒ  ·Ãƒ  ½Ãƒ  °Ãƒâ€˜Ã¢â‚¬ ¡Ãƒ  ½Ãƒ  ¸Ãƒ  ºÃƒ  ¸ à  ·Ãƒ  °Ãƒ  »Ãƒ  ¸Ãƒâ€˜Ã‹â€ à  °Ãƒâ€˜Ã… ½Ãƒâ€˜Ã¢â‚¬Å¡Ãƒâ€˜Ã…’ÑÂ Ñ Â Ã Â ½Ãƒ  µÃƒ  ·Ãƒ  ¼Ãƒâ€˜-à  ½Ãƒ  ½Ãƒ  ¸Ãƒ  ¼Ãƒ  ¸. Quantity supplied: the amount of a product that producers are willing and able to sell at a certain price during a time period, all other factors that may determine supply remaining the same. à ’à  µÃƒ  »Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬ ¡Ãƒ  ¸Ãƒ  ½Ãƒ  ° à  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒ  ¿Ãƒ  ¾Ãƒ  ·Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬ Ñ-Ñ-: à  ºÃƒâ€˜-à  »Ãƒâ€˜Ã…’à  ºÃƒâ€˜-Ñ ть Ñ‚Ã Â ¾Ãƒ  ²Ãƒ  °Ãƒâ€˜Ã¢â€š ¬Ãƒâ€˜-à  ², Ñ à  ºÃƒâ€˜- à  ²Ãƒ  ¸Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒ  ±Ãƒ  ½Ãƒ  ¸Ãƒ  ºÃƒ  ¸ à  ³Ãƒ  ¾Ãƒâ€˜Ã¢â‚¬Å¡Ãƒ  ¾Ãƒ  ²Ãƒâ€˜- Ñ‚Ã Â ° à  ·Ãƒ  ´Ãƒ  °Ãƒâ€˜Ã¢â‚¬Å¡Ãƒ  ½Ãƒâ€˜- à  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒ  ´Ãƒ  °Ãƒ  ²Ãƒ  °Ãƒâ€˜Ã¢â‚¬Å¡Ãƒ  ¸ à  ·Ãƒ  ° à  ²Ãƒ  ¸Ãƒ  ·Ãƒ  ½Ãƒ  °Ãƒâ€˜Ã¢â‚¬ ¡Ãƒ  µÃƒ  ½Ãƒ  ¾Ãƒâ€˜- цÑ-à  ½Ãƒ  ¸ à  ²Ãƒ  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒ  ´Ãƒ  ¾Ãƒ  ²Ãƒ  ¶ à  ¿Ãƒ  µÃƒ  ²Ãƒ  ½Ãƒ  ¾Ãƒ  ³Ãƒ  ¾ à  ¿Ãƒ  µÃƒâ€˜Ã¢â€š ¬Ãƒâ€˜-à  ¾Ãƒ  ´Ãƒâ€˜Ã†â€™ ц¡Ãƒ  °Ãƒâ€˜Ã‚ у, à  ²Ãƒâ€˜Ã‚ Ñ- Ñ -à  ½Ãƒâ€˜Ã‹â€ Ñ- Ñ„Ã Â °Ãƒ  ºÃƒâ€˜Ã¢â‚¬Å¡Ãƒ  ¾Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¸, Ñ à  ºÃƒâ€˜- à  ¼Ãƒ  ¾Ãƒ  ¶Ãƒâ€˜Ã†â€™Ãƒâ€˜Ã¢â‚¬Å¡Ãƒâ€˜Ã…’ à  ²Ãƒ  ¸Ãƒ  ·Ãƒ  ½Ãƒ  °Ãƒâ€˜Ã¢â‚¬ ¡Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬Å¡Ãƒ  ¸ à  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒ  ¿Ãƒ  ¾Ãƒ  ·Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬ Ñ-ÑÅ ½ à  ·Ãƒ  °Ãƒ  »Ãƒ  ¸Ãƒâ€˜Ã‹â€ à  °Ãƒâ€˜Ã… ½Ãƒâ€˜Ã¢â‚¬Å¡Ãƒâ€˜Ã…’Ñ Ñ à  ½Ãƒ  µÃƒ  ·Ãƒ  ¼Ãƒâ€˜-à  ½Ãƒ  ½Ãƒ  ¸Ãƒ  ¼Ãƒ  ¸. Supply: the total amount of a commodity available for purchase by consumers. à Å ¸Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒ  ¿Ãƒ  ¾Ãƒ  ·Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬ Ñ-Ñ : Ñ уà  ºÃƒâ€˜Ã†â€™Ãƒ  ¿Ãƒ  ½Ãƒ  ° à  ºÃƒâ€˜-à  »Ãƒâ€˜Ã…’à  ºÃƒâ€˜-Ñ ть Ñ‚Ã Â ¾Ãƒ  ²Ãƒ  °Ãƒâ€˜Ã¢â€š ¬Ãƒâ€˜-à  ² à  ´Ãƒ  ¾Ãƒâ€˜Ã‚ туà  ¿Ãƒ  ½Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬ ¦ à  ´Ãƒ  »Ãƒâ€˜Ã‚ à  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¸Ãƒ  ´Ãƒ  ±Ãƒ  °Ãƒ  ½Ãƒ  ½Ãƒâ€˜Ã‚ Ñ à  ¿Ãƒ  ¾Ãƒ  ¶Ãƒ  ¸Ãƒ  ²Ãƒ  °Ãƒâ€˜Ã¢â‚¬ ¡Ãƒ  °Ãƒ  ¼Ãƒ  ¸. Supply curve: the graphical representation of how supply varies as prices change. à Å ¡Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¸Ãƒ  ²Ãƒ  ° à  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒ  ¿Ãƒ  ¾Ãƒ  ·Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬ Ñ-Ñ-: à  ³Ãƒâ€˜Ã¢â€š ¬Ãƒ  °Ãƒâ€˜Ã¢â‚¬Å¾Ãƒâ€˜-ц¡Ãƒ  ½Ãƒ  µ à  ²Ãƒâ€˜-à  ´Ãƒ  ¾Ãƒ  ±Ãƒâ€˜Ã¢â€š ¬Ãƒ  °Ãƒ  ¶Ãƒ  µÃƒ  ½Ãƒ  ½Ãƒâ€˜Ã‚ Ñ‚Ã Â ¾Ãƒ  ³Ãƒ  ¾, Ñ à  º à  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒ  ¿Ãƒ  ¾Ãƒ  ·Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬ Ñ-Ñ à  ·Ãƒ  ¼Ãƒâ€˜-à  ½Ãƒâ€˜Ã… ½Ãƒâ€˜Ã¢â‚¬ Ñ‚ÑŒÑ Ñ Ñ à  ºÃƒâ€˜Ã¢â‚¬ °Ãƒ  ¾ à  ·Ãƒ  ¼Ãƒâ€˜-à  ½Ãƒâ€˜Ã… ½Ãƒâ€˜Ã… ½Ãƒâ€˜Ã¢â‚¬Å¡Ãƒâ€˜Ã…’ѠѠцÑ-à  ½Ãƒ  ¸. Supply schedule: a table showing the quantities of a product that would be offered for sale at various prices at a given time. à  ¨Ãƒ  ºÃƒ  °Ãƒ  »Ãƒ  ° à  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒ  ¿Ãƒ  ¾Ãƒ  ·Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬ Ñ-Ñ-: Ñ‚Ã Â °Ãƒ  ±Ãƒ  »Ãƒ  ¸Ãƒâ€˜Ã¢â‚¬ Ñ , ц°Ãƒ  ¾ à  ¿Ãƒ  ¾Ãƒ  ºÃƒ  °Ãƒ  ·Ãƒâ€˜Ã†â€™Ãƒâ€˜Ã¢â‚¬ à  ºÃƒâ€˜-à  »Ãƒâ€˜Ã…’à  ºÃƒâ€˜-Ñ ть Ñ‚Ã Â ¾Ãƒ  ²Ãƒ  °Ãƒâ€˜Ã¢â€š ¬Ãƒâ€˜Ã†â€™, Ñ à  ºÃƒ  ¸Ãƒ  ¹ à  ±Ãƒâ€˜Ã†â€™Ãƒ  ´Ãƒ  µ à  ·Ãƒ  °Ãƒ  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒ  ¿Ãƒ  ¾Ãƒ  ½Ãƒ  ¾Ãƒ  ²Ãƒ  °Ãƒ  ½Ãƒ  ¸Ãƒ  ¹ à  ½Ãƒ  ° à  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒ  ´Ãƒ  °Ãƒ  ¶ à  ·Ãƒ  ° Ñâ‚ ¬Ãƒâ€˜-à  ·Ãƒ  ½Ãƒ  ¾Ãƒâ€˜- цÑ-à  ½Ãƒ  ¸ à  ²Ãƒ  ¿Ãƒâ€˜Ã¢â€š ¬Ãƒ  ¾Ãƒ  ´Ãƒ  ¾Ãƒ  ²Ãƒ  ¶ à  ¿Ãƒ  µÃƒ  ²Ãƒ  ½Ãƒ  ¾Ãƒ  ³Ãƒ  ¾ ц¡Ãƒ  °Ãƒâ€˜Ã‚ у.
Sunday, January 19, 2020
Gladwell Power of Context Analysis
Gladwell Power of Context Analysis Common belief in todays society would most likely base an individuals behavior on factors such as genes, upbringing, personal convictions, a persons history, personality, etc. These factors seem like reasonable and logical conclusions, but which is most significant? Is there anything missing? Malcolm Gladwell, a writer for The New Yorker and author of The Tipping Point: How Little Things Make a Big Difference, has a special desire to come up with an answer to this question.In the chapter â€Å"The Power of Context: Bernie Goetz and the Rise and Fall of New York City Crime†Gladwell examines this interesting question and comes up with an answer of his own. According to Gladwell the different conclusions listed above do play a role in determining how one behaves but are not the most significant factors. Gladwell believes that the immediate environment has the most significant influence on ones behavior, also referred to as his Power of Context theory.Although Gladwell understands that this theory might sound a bit crazy to most he stands by his belief by offering different means, both directly and indirectly, to help persuade his readers into accepting this â€Å"radical idea†. Gladwell presents a number of different studies which help substantiate his claim. He begins the chapter by discussing the transformation of the New York City subway system that took place in the late 1980’s. In the years leading into the transformation conditions on the subway were extremely poor with crime rates at a all time high.The Broken Window Theory, based on the same premise as the Power of Context according to Gladwell, was put into effect resulting in a dramatic decrease in the crime rate. Another study, held at Stanford University, examined what causes prisons to be such a nasty place; â€Å"was it because prisons are full of nasty people, or was it because prisons are such nasty environments that they make the people nas ty? †This study concluded that certain situations are powerful enough to â€Å"overwhelm people’s inherent predispositions. In other words, the participant’s surroundings caused what we consider mentally healthy people to crack and break down. In addition to the previous two studies mentioned, Gladwell also cites another study conducted by Princeton University. This study suggested that what you hold in your heart and your thoughts are less important in guiding your behavior than the immediate context; disproving the idea that personal convictions guide the way one behaves. Evidence is effective in Gladwells effort to convince readers that the immediate environment influences behavior significantly, but is not his only means in doing so.In addition to providing evidence to validate his claim, Gladwell also employs the use of rhetorical strategies. Rhetorical strategies are efforts made by an author to help persuade their readers into accepting their main argume nt. Recognizing such strategies is crucial when effectively examining and analyzing texts because it gives readers the power to decide how they choose to respond to an authors (Gladwells) view. Without this valuable knowledge readers are more susceptible of falling victim to this strategy and are more willingly ready to accept his claim.With that being said, it is essential to recognize the rhetorical strategies used by Gladwell to properly examine and evaluate his argument. In an effort to sway reader into accepting his claim Gladwell links his Power of Context Theory with the Broken Windows Theory. Gladwell makes the decision to connect one another when discussing the success of the Broken Window theory in the transformation the New York subway system; asserting that they â€Å"are one and the same. Gladwell understood that he was likely to meet much opposition in respects to his claim, especially from those who do not believe the environment plays a role in determining ones beha vior. A majority of people would concur that other factors play a much more significant role when determining behavior; as he himself even acknowledges his claim to be a â€Å"radical idea. †Such resistance would greatly threaten Gladwells attempt in persuading his readers. Gladwell attempts to undermine opposition by linking his theory to another, one in which has already been proven to be successful.Doing so not only allows Gladwells audience to see his theory applied in real life situations but also helps build credibility to his claim as well. This strategy is quite clever in his attempt to persuade the reader; without doing so his audience would likely still have some doubts regarding his claim and whether or not changing the environment plays a key role in shaping personality. Evaluating this strategy leads to the conclusion that showcasing the relationship between the Broken Window theory and Gladwells claim helps better his chance of persuading his readers.Another pe rsuasive strategy used by Gladwell is citing scientific evidence from different prestigious universities around the country. Gladwell discusses studies including the prison study done at Stanford and the Good Samaritan study done at Princeton as well. Gladwell anticipated that many people would not accept such a â€Å"radical idea†if he was the only one who has working to prove his claim to be true. By citing such universities Gladwell effectively removes the opposition from those who might not believe this is an important topic and would simply ask, â€Å"Who cares? By stating these major universities held studies it helps persuade readers that this topic is not only important in the academic community but to a degree also to be important to our country as a whole. Gladwell understands most of his readers are assumedly intelligent so citing such information might help sway the hesitant into believers. Essentially, Gladwell implies that his claim is one of great importance without coming right out and saying it.Without doing so many people would stick with their convictions and hold the belief that this topic is not one of any importance; leading to a rejection of his claim all together. Finally, another strategy used by Gladwell in his text was acknowledging other factors indeed play a role in influencing ones behavior. Gladwell does so after citing both studies done at the different universities, stating in one instance â€Å"This does not mean that our inner psychological states and personal histories are not important in explaining ones behavior. By acknowledging other factors as playing a role he avoids the resistance of those who believe that those factors are the only factors that influence our behavior. Gladwell refers to his idea as being hard to accept on numerous different occasions throughout his text, leading one to believe he anticipated resistance from those who had trouble accepting his claim about environment playing the biggest role in influencing behavior. This aspect of the text increases reader’s likelihood of accepting Gladwells claim because it shows that he is not rejecting common belief, but adding his take on it.Rejecting a person’s belief will not only anger them but also decrease any chance at getting them to accept your argument. Gladwell understands this fact and hopes to avoid this problem by agreeing with what he assumed his readers would be feeling. If Gladwell decided not to do so I belief he would face a bigger challenge in changing the way people think about behavior and might not have been as successful in his attempt to persuade his readers. As evident throughout this essay, Gladwell offers different means, both direct and indirect, to help persuade readers into accepting his claim.Gladwells direct use of evidence sets a solid foundation on which he can place his argument that the environment significantly influences ones behavior. Providing evidence helps substantiate his arg ument while his use of different rhetorical strategies assists his efforts in persuading his readers to accept it. Identifying such strategies is beneficial because it allows you to make an informed and educated decision on whether or not you agree with Gladwells c
Saturday, January 11, 2020
Character of Mrs. Sparsit in Hard Times
MRS. sparsit is an elderly lady who is highly connected and have a huge aristpcratic bvackground. her husband belonged to the family of â€Å"POWERLS†. Scadgers†¦. she is a widow now, fallen yupon evil days to take up job. She works as a housekeeper olf mr. Josiah Bounderby. bounderby treats her in the most polite manner and never fails to pay compliments and regards to her excellent background. Mrs. Sparsit is very much proud of her coonnectipons.The jnovelist descxribes her as a p;erson haveing dense black Coriolanian eyebrows and a thick roman nose with classical eyes.. o stress on her aristocratic background in a satirical way. dickens have also mafde her the object of satire with reference to her pride and vanity for her high connections. It is because of this pride that sjhe shares her employers contempt for the workers. It is due to this disdain she treats Stephen Blackpool with total lack of symparthy when he comes tp Bounderby to discuss his matrimonial troubles. she even regards him as an â€Å"Impiety of people†. Bounderby's decesipn top marry Loiusa ; Gradgrind's daughter is obviously unfavourable to MRs.Sparsits, bu t she dint utterd a word against it,. Bounderby was aware of her dissaproval regarding his marrige so hi took a bottle of smelling salts witrh him under the impression that she wou;d faint on hearing the unwelcomed news. But to the utter surprise of Bounderby she saw no sign of trouble or dissaproval on her face. Instead she looked at him in a pityful manner and extended her goodwishes to bounderby. BOunderby seems to understand mrs. sparsit well therefore he asserted at once dat his housekeeper woyuld not be abel to beer the site of hiss would be wife.
Thursday, January 2, 2020
Christmas Carol by Charles Dickens Essay examples - 983 Words
Christmas Carol by Charles Dickens Scrooge has become one of the most commonly know characters from Charles Dickens’s novels, in the respect that he is the most horrible and callus of all his characters, this dastardly individual was used to convey a serious social message about the extreme neglect of Victorian employees. The first chapter of ‘A Christmas Carol’ prepares the reader for the rest of the novel. Dickens does this by creating antipathy for scrooge and by introducing gothic elements to prepare the reader for the arrival of the spirits later on in the book. In the 18th century Charles Dickens was one of the most important†¦show more content†¦By describing and showing scrooges behaviour towards others Dickens is allowing the reader to make a judgement of scrooge for themselves. Scrooge’s attitude to his late, only friend, Marley, shows how cold and unfeeling scrooge is: â€Å"An excellent man of business on the very day of the funeral†Scrooge had been partners with Marley for many years and yet he chose to conduct business rather than attend Marley’s funeral. This shows the reader that relationships, no matter how well forged, were irrelevant to Scrooge where money and business were concerned. This quote also emphasises how unfeeling scrooge was. Scrooge treats his nephew with no respect and is dismissive and rude when his nephew invites him to Christmas at his house. â€Å"every idiot who goes about with ‘Merry Christmas on his lips should be boiled with his own pudding†¦Ã¢â‚¬ Scrooge is saying he doesn’t want anyone to celebrate Christmas never mind his nephew. He is very cold hearted towards his nephew and the quote is an example of scrooge’s callous behaviour to him. When the ‘portly gentlemen’ (charity) ask for money from scrooge for the poor scrooge says: â€Å"If they would rather die†¦. They had better do it and decrease the surplus population†This quote is showing scrooge at his most callous. Scrooge isShow MoreRelatedCharles Dickens and A Christmas Carol1613 Words  | 7 PagesCharles Dickens and A Christmas Carol: Famed British author, Charles Dickens was born on February 7, 1812, in Portsmouth, England. He was the second of eight children, living in a poor neighborhood in London. His parents were John Dickens, a naval clerk, who always lived beyond his means. Married to his mother Elizabeth Dickens, who aspired to be a teacher and a school director. Dickens went to William Giles’ school in Chatham, Kent, for approximately one year before his father’s money habitsRead MoreA Christmas Carol By Charles Dickens1139 Words  | 5 Pages The book I have chosen is A Christmas Carol by Charles Dickens. It has been rewrote few times but I wanted to pick the author that started it all. Charles John Huffman Dickens lived from February 7th,1812 – June 9th,1970 making him 58 when he died. He was buried Westminster Abbey. His mother and father were John and Elizabeth Dickens. He had seven siblings four brothers and three sisters. During his life he was married to his wife Catherine Dickens from 1836 to the day he died. Together they hadRead MoreA Christmas Carol (Charles Dickens)1144 Words  | 5 PagesCharles Dickens believed it was up to him to inform the people of Britain of the social problems occurring around Britain. While Dickens was a young man, he suffered from poverty along with his mother and father. His father was imprisoned for dept and Charles wanted to become a social reformer. Dickens used these problems as themes for his book ‘A Christmas Carol. These themes involve poverty, pollution and a c hanging of ways. Dickens used Scrooge, the main character in the book at first to showRead MoreA Christmas Carol By Charles Dickens1160 Words  | 5 PagesCharles Dickens began writing the famous story â€Å"A Christmas Carol†in October 1843 and wrote excitedly during the next six weeks. He completed the narrative at the end of November so that it could be published by the time it was Christmas. It came out on December 17, 1843 and sold out in only three days (Molly Oldfield). The expression â€Å"Bah! Humbug†, a line repeated many times in the story by its main character, a miserable and bitter fellow by the name of Ebenezer Scrooge, has become a well-knownRead MoreCharles Dickens A Christmas Carol Essay922 Words  | 4 Pages â€Å"Bah, humbug!†This well-known phrase is popular thanks to Charles Dickens’ A Christmas Carol. In this literary classic, Dickens tells the story of Ebenezer Scrooge, a â€Å"tight fisted...covetous old sinner†(12). Through a series of hauntings by various Christmas ghosts, Scrooge realizes the error of his ways and changes completely into a warm-hearted, generous man. Scrooge’s tale is a familiar one; countless movies have been filmed, plays have been produced, and references made in other storiesRead MoreCharles Dickens A Christmas Carol1316 Words  | 6 PagesIt can be easily depicted that Christmas is a time of the year to share joyfulness. In Charles Dickens’ A Christmas Carol, Ebenezer Scrooge is a character that is effortlessly described as a hardheaded cold man. It is simple to judge the character of Scrooge in this manner, but it is important to recognize the change in his personality throughout the story. Scrooge’s transformation happens very quickly, but he becomes generous and caring only when he is forced to see himself through a stranger’sRead MoreA Christmas Carol By Charles Dickens1293 Words  | 6 PagesCharles Dickens presents many sh ort stories and novels. He is greatly known for his short fiction and later theater play, â€Å"A Christmas Carol†. In one short story, a reader could describe it as Charles â€Å"other†Christmas story, an elderly narrator reminisce of holiday past. There is a range of appeal in the story itself from comforting memories of loved toys to leaving the reader with an eerie feeling of various childhood haunts. The reader’s analysis of Dickens use of vivid detail together with hisRead MoreA Christmas Carol By Charles Dickens1331 Words  | 6 PagesChristy Mak 12/21/15 Period three Scrooge Changes In the story, A Christmas Carol, by Charles Dickens, Scrooge is the main character. In the beginning of the story, he is shown as an old miser counting and gripping his money in the counting house. Later on, Scrooge’s dead business partner, Marley, has visited Scrooge from the grave while being bounded in chains to warn Scrooge to change his ways or suffer the same fate. Soon, three ghosts are sent to visit Scrooge to show him scenes thatRead MoreA Christmas Carol By Charles Dickens914 Words  | 4 PagesFew characters in Christmas literature personify the antithesis of the season like Ebenezer Scrooge. Penned in 1843, Charles Dickens classic, A Christmas Carol has been told and retold. It has become a fixture of the season. So ingrained in our culture, is this story, that everyone knows the name Scrooge and the negative connotation that accompanies it. But what if, instead of just a cranky old miser, Ol Ebenezer Scrooge was more of a rather observant social commenta tor? In order to defendRead MoreThe Life Of Charles Dickens A Christmas Carol1062 Words  | 5 Pageslasted from 1832 to 1901 under Queen Victoria’s reign. The culture revealed in this era was a time of rapid change, social inequality, industrialization, supernatural and religious beliefs, and was accurately reflected in the works of Charles Dickens, A Christmas Carol. Roles of men and women were strictly defined, as were economic statuses. The hustle and bustle of the streets led to illnesses. Working conditions were destitute and unsanitary. Children often had little to no education, unless very
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