【学习笔记】懂你英语 商务英语 Level 5 Unit 2 Part 5（II）词汇 Law of Supply & Demand

Let's look further into how price affects supply and demand.

supply and demand curves

This diagram shows supply and demand curves.

The vertical axis represents the price of a product, and the horizontal axis represents its quantity.

The supply curve shows how the supply of a product is affected by changes in price.

The demand curve shows how the demand for a product is affected by changes in price.

the law of supply

The law of supply states that as the price of a product goes up, supply will also go up.【跟读】

When the market price is high, sellers will create more supply because they want to make more money.  【朗读】

On the other hand, if the market price declines, less supply will be created.

the law of demand

The law of demand states that as the price of a product goes up, demand will go down.

That's because fewer consumers will want to buy a product if they think the price is too high.

However, if the price goes down, there will probably be a greater demand.

【选择】-What does the supply curve show in the above diagram?  -How the supply of a product is afftected by price.

【选择】-Why would a business reduce in supply of a product?    -The price of the product has gone down.

【选择】-What would cause consumers to buy less of a product?   -It has become more expensive.

【填空】The diagram show that as price increases, the quantity of supply also increases.

【填空】Luxury goods violate the law of the demand because people are often willing to buy them despite their high prices.

【跟读】The demand for a product decreases as its price increases.

price elasticity

Price elasticity indicates how the demand for a product is affected by its price.

If people buy more or less of a product as its price changes, the demand for it is elastic.

On the other hand, if demand is not affected by price, it is inelastic.

For example, people will pay for water, even if the price is high, because they need it to survive.

equilibrium

Equilibrium occurs when supply and demand in a market are balanced.

In the diagram, it is the point where the demand curve meets the supply curve.

When a market is in equilibrium, there is neither a shortage nor a surplus.

As a result, prices become stable.

【选择】If consumers buy less of a product as its price goes up, ...    the demand for the product is elastic.    

【选择】If there is neither a shortage nor a surplus of a product in a market, ... the market is in equilibrium.

【选择】-When do sellers tend to create more supply?    -when the price of a product has gone up

【选择】-What shows how the supply and demand of a product are affected by the changes of its price?       -supply demand curve

【填空】The demand for chocolate is elastic, because if the price of chocolate gets too high, consumers will buy less of it.   巧克力的需求是有弹性的，因为如果巧克力的价格过高，消费者会减少购买。

【填空】【跟读】When supply and demand reach equilibrium, there is neither a surplus nor a shortage.

【填空】The demand curve show how the quantity demanded by consumers is affected by changes in price.

【填空】The demand for electricity is inelastic, because people need it to live regardless of the price.

【填空】Equilibrium is when the amount of a product available equals the amount that consumers want to buy.