MARKETS

In Soviet times and unfortunately in present court practice, the principle of supremacy of the law (legality) was and still is the particular aim, but it is not considered as only the instrument of defence of human rights.

Let's imagine a situation. This situation is real, taken from practice.

The person got the administrative act, which violated his rights. He had one-year term to appeal against the administrative act to a court. However, after 7 months, parliament passed the law which established 6 months as the term for appealing.

After that the person filed a lawsuit. Skipping the deadline for filing a claim is the reason to leave the claim without consideration. What should the court do? To leave a claim without consideration as it is prescribed by law? Or to hear the case?

In a similar case (“Melnyk v. Ukraine”) the ECHR noted:

“…where the issue of an effective remedy is concerned, the remedy in question must already exist with a sufficient degree of certainty. In this regard, the Court takes the view that the retroactive application of procedural law would undermine the principle of legal certainty and would be contrary to the rule of law when it deprives a person of access to a remedy which is deemed to be effective.

… the essence of the procedural changes in the present case was to speed up civil proceedings and, accordingly, to reduce their overall length. There is nothing to suggest that it was aimed at limiting access to the court to any particular category of cases. Nevertheless, despite their clearly legitimate aim, in the Court’s opinion the refusal of the applicant’s appeal was not relevant to the purpose of these procedural changes”.

According to the principle of legal certainty individuals must be able to rely upon the clear wording of the rule governing their conduct so that they can foresee the legal consequences of their actions.

MARKETS

I. Read and memorize the following words, word-combinations and word-qroups:

market — ринок

e.g. We went to the market to buy food for the family.

tangible — відчутний на дотик; матеріальний

e.g. A good is something tangible that is produced and consumed.

to satisfy desires — задовольнити потреби

e.g. Markets exist to satisfy individual desires.

intangible — невідчутний на дотик; невловимий, неясний

e.g. Some things are intangible but are also important in satisfying individual interests.

goods — товар

e.g. Product markets are divided into two classes: goods and services.

service — послуга

e.g. A service is something intangible that is produced and consumed, also frequently having been purchased in a market.

to adjust — відрегулювати

e.g. When you have someone adjust a carburettor you are purchasing a service.

demander — споживач

e.g. Some people come to a market because they want to buy. They are called demanders.

supplier — постачальник

e.g. Some people come to a market because they want to sell. They are called suppliers.

market allocation — місце на ринку

e.g. The interaction of demanders and suppliers determines a market price and a market allocation of a particular commodity,

to affect the market — впливати на ринок

e.g. This interaction creates a set of incentives for sub­sequent decisions by both suppliers and demanders that may affect many markets.

excess supply — перевищення пропозиції

e.g. Excess supply occurs when, at a particular market price, the quantity that suppliers want to provide to the market exceeds the quantity that demanders want to purchase.

to decline — знижуватися, зменшуватися

e.g. Excess supply will be eliminated if the relative price is free to decline.

equilibrium — рівновага

e.g. The importance of equilibrium is that the equilibrium relative price is the only price at which the interests of demanders coincide with the interests of suppliers,

to eliminate — ліквідувати, знищувати

e.g. Excess demand will be eliminated if the relative price is free to increase.

II. Give English equivalents of the following:

III. Fill in the blanks with appropriate words:

a) a set of incentives; b) excess demand; c) are divided into; d) purchasing a service; e) increases; f) the importance of equilibrium; g) the interaction of demanders and suppliers; h) excess supply; i) decreases .

1. Frequently product markets ... two classes: goods and services.

2. When you have someone adjust a carburetor, however, you are ....

3. ... determines a market price and a particular commodity.

4. This interaction also creates ... for subsequent decisions by both suppliers and demanders that may affect many markets.

5. .... occurs when, at a particular market price, the quantity that suppliers want to provide to the market exceeds the quantity that demanders want to purchase.

6.... occurs when, at a particular market price, the quantity that suppliers want to provide to the market is less than the quantity that demanders want to purchase.

7. When there is excess demand, the relative price ... and when there is excess supply the relative price .... .

8. ... is that the equilibrium relative price is the only price at which the interests of demanders happen to coincide precisely with the interests of the suppliers.

IV. Read and translate the text:

A market is a set of transactions in which a particular kind of commodity is exchanged, and in which the transactions for this commodity among different individuals and firms are related.

There are markets for hundreds of thousands of things. Some of these things are tangible and satisfy individual desires, while others are intangible but also important in satisfying individual interests. These things are frequently referred to as products. Frequently, product markets are divided into two classes: goods and services. For example, a hamburger is a good, while a doctor's examination is a service. When you buy an automobile, you are purchasing a good. When you have someone adjust a carburetor, however, you are pur­chasing a service.

A good is something tangible that is produced, and consumed, often having been purchased in a market. A service is something intangible that is produced and consumed, also frequently having been purchased in a market.

Resources are things used to produce goods, services and capital. Some people come to a market because they want to buy (demanders), others come because they want to sell (suppliers). The interaction of demanders and suppliers determines a market price and a market allocation of a particular commodity. This interaction also creates a set of incentives for subsequent decisions by both suppliers and demanders that may affect many markets. To understand these incentives, as well as how market prices and allocations are determined, we need to understand how suppliers and demanders respond to different relative price and the quantity of a particular commodity that individuals or firms (suppliers) would be willing to provide, to the market.

Demand is all combinations of relative price and the quantity of a particular commodity that individuals or firms (demanders) would be willing to punch are in a market

A market is created when those who willingly supply a good, service, or resource exchange with those who desire to use, control, or consume a good, service, or resource.

Markets reallocate commodities from suppliers to demanders. What if suppliers want to provide more than demanders want to purchase? Or, what if demanders- want more than suppliers, are willing to provide?

Excess supply occurs when, at a particular market price, the quantity that suppliers want to provide to the market exceeds the quantity that demanders want to purchase.

Excess demand occurs when, at a particular market price, the quantity that suppliers want to provide to the market is less than the quantity that demanders want to purchase.

In an open or free market, the relative price for a commodity will generally decrease when there is excess supply; the relative price will generally increase when there is excess demand.

Excess demand will be eliminated if the relative price is free to increase.

Markets adjust in predictable ways if, when there is excess demand, the relative price increases and if, when there is excess supply, the relative price decreases. These changes in relative prices tend to eliminate the excess supply or excess demand. A market is equilibrium when the quantity that suppliers are willing to provide to the market at a specific market price is exactly equal to the quantity that demanders desire to purchase in the market at the same market price.

The importance of equilibrium is that the equilibrium relative price is the only price at which the interests of demanders happen to coincide precisely with the interests of the suppliers. At any other relative price, the interests of suppliers and demanders do not coincide.

V. Answer the following questions:

1. What is a market?

2. What is a good?

3. What is a service?

4. Whom do we call demanders and suppliers?

5. What is supply?

6. What is demand?

7. What is excess supply?

8. What is excess demand?

9. When will excess demand and excess supply be eliminated?

10.What is an equilibrium of a market?

11.Why is market equilibrium important?

VI. Define the terms:

VII. Translate into English:

1. Розрізняють ринки товарів і ринки послуг. 2. Товар — це щось відчутне на дотик, що виробляється та споживається, часто те, що ми можемо придбати на ринку. 3. Послуга — це щось не відчутне на дотик, що виробляється та споживається, що ми також можемо придбати на ринку. 4. Ресурси — ще те, що використовується для виготовлення товару та надання послуг, 5. Взаємодія споживачів і постачальників визначає ринкову ціну та розміщення ринку. 6. Пропозиція — це поєднання відносної ціни та кількості якогось товару, що його фірми або окремі особи бажають постачати на ринок. 7. Споживання — це поєднання відносної ціни та кількості якогось товару, що його фірми або окремі особи бажали б придбати на ринку. 8. Надмірна пропозиція складається тоді, коли кількість товару, яку постачальник хоче поставити на ринок з ринковою ціною, перевищує кількість, яку споживачі бажають і придбати. 9. В умовах вільного ринку відносна ціна на товар буде падати при зростанні пропозиції та підніматися при зростанні попиту.

VIII. Read and dramatize the following dialogue:

A.: I say, Fred, you promised to tell me everything about markets.

B.: Yes, I do remember I promised to tell you.

A.: I am all ears.

B.: To begin with markets are as old as recorded civilization.

A.: If I've got you right, they existed in earlier times.

B.: That's right. In earlier times, they were primarily a physical location where people would gather periodically to exchange goods and services.

A.: So, going to market was an important economic and social activity.

B.: Indeed, it was so important that permanent market locations frequently developed into the towns and cities that now dot (охватывать) much of the landscape.

A.: Sure. And today we think less about markets as specific physical locations where exchanges occur than we do as institutional arrangements (организационные структуры) that tie exchanges together in some way.

B.: I think that any particular transaction occurs in a specific place, of course, but tens of thousands of such transactions scattered across a community or even a nation may con­stitute a market for a particular thing.

A: Yes. And if there is a market, a person can expect that the nature of the transaction will be similar in different locations.

B.: What do you mean by this?

A.: For example, we speak of the housing market in a city or the rental market in a city, even though there is no central location where houses are bought and sold or where apartments are offered for rent and rented. While there may be local peculiarities, buying a home in one part of a city is quite similar to buying a home in another part of a city.

B.: In this sense there is a market for housing in a city, or even across an economy. And, similarly, we may speak of the market for cereal, or soft drinks or shirts or jeans or computer software, even though cereal is sold in thousands of different locations throughout an economy.

A: Thus, a market need not have a single physical location as long as transactions for a specific good or service or resource in one place are related in some way to the transactions for the good or service or resource in some other place.

B: That's great. And in an important sense, however, a market is an idea. That is, a market is a way of thinking about the consequences of the many transactions that occur for specific goods, services, or resources.

IX. Make up your own dialogue using the following expressions:

exchange of goods and services

to satisfy individual interests

to determine a market price

to provide to the market

service or resource

transactions for commodity

to purchase in a market

a market allocation

to consume a good

X. Paraphrase the sentences as in the model:

Model: I am afraid that this firm will provide less quantity of the commodity to the market. I am afraid lest this firm provide less quantity of the commodity to the market.

1. I worry, because the relative price for a commodity will decrease. 2. The retailer is afraid that his goods will satisfy individual desires of only one group of consumers. 3. The producers are afraid that the retailers will provide inconvenient market location. 4. The producers are afraid that their market research is of no value to predict what the people will want. 5. The producers are afraid that marketing operations will be very expensive.

XI. Paraphrase the sentences as in the model:

M о d e I: The manager demanded: «The wholesalers must simplify the process of distribution.» The manager demanded that the wholesalers simplify the process of distribution.

1. The wholesaler demanded: «We must determine a market price of a particular commodity.» 2. The manager ordered: «The interaction of demanders and suppliers must determine a market allocation of a particular commodity.» 3. The manager demanded: «The wholesalers must provide new channels of distribution which help to bring goods to the market.» 4. The middleman suggested: «Suppliers and demanders must respond to different relative prices to determine market allocations and prices.» 5. The producer suggested: «Markets must adjust in predictable ways.» 6. The producer suggests: «Changes in relative price must tend to eliminate the excess supply or excess demand.»

XII. Translate into English using Subjunctive I:

1. Виробники побоювалися, щоб ціни на цей вид товару не знизилися. 2. Необхідно, щоб ринкова ціна визначалася взаємодією суб'єктів попиту та пропозиції. 3. Важливо, щоб встановилася ринкова рівновага. 4. Виробники запропонува­ли, щоб оптові торговці спростили процес збуту. 5. Необ­хідно, щоб виробники були готові постачати на ринок таку кількість товару, яку споживачі готові придбати. 6. Важли­во, щоб інтереси споживачів збігалися з інтересами поста­чальників.

XIII. Communicative situations:

1. Why does a market adjust toward an equilibrium?

If markets did not adjust toward an equilibrium, what behavior would you observe?

2. Do you suppose that a market ever reaches equilibrium? If not, is the concept of equilibrium useful?

3. If a firm found that its market demand was inelastic and cut its production, would its revenues from supplying goods to the market increase or decrease?

Date: 2015-01-02; view: 1281