Chapter 20 elasticity

1. Key terms – matching and translation.

Read aloud the key term and its definition so that they make up a single sentence. (Remember about the agreement between the subject and the predicate!). Translate the sentences you have arrived at from English into Russian.

Set 1

inelastic demand	Income elasticity < 0.
normal goods	Falls on the person who suffers reduced purchasing power because of a tax.
complementary goods	Positive cross-elasticity of demand.
legal incidence of taxation	Income elasticity > 0.
unitary price elasticity of demand	Price changes are proportionally greater than resulting quantity changes.
substitute goods	Falls on person or firm who pays the tax to the government.
determinants of elasticities of demand	The ratio of proportionate changes between two related variables.
inferior goods	Time period, availability of substitutes, budget share.
economic incidence of taxation	Total revenue is immune to price changes.
elasticity	Negative price cross-elasticity of demand.

Set 2

perfectly inelastic demand	A straight line through the origin when graphed.
relatively inelastic demand	A tangent to this curve intersects the horizontal axis.
unitary demand elasticity	A horizontal curve when perfect substitutes are available.
relatively elastic demand	Land is the best single example.
perfectly elastic demand	When graphed, this is a rectangular hyperbola.
perfectly inelastic supply	Price cuts yield increases in revenue and spending.
relatively inelastic supply	No one has ever been able to give a satisfactory example.
unitarily elastic supply	A firm faced by this will profit by raising its prices.
relatively elastic supply	When sellers respond vigorously if the price rises slightly.
perfectly elastic supply	Makes vast amounts of a good available at a constant price.

2. Text translation.

Translate the text from English into Russian in writing paying particular attention to the translation of the economic terms in bold as well as words and phrases relevant to the subject of the text. Read out your translation in class and introduce the necessary corrections.