7. The concept of elasticity.

Ценовая эластичность-это изменение величины спроса под влиянием динамики цен.

Эласти́чность (англ. elasticity) — мера чувствительности одной переменной (например: спроса или предложения) к изменению другой (например: цене, доходу) , показывающая, на сколько процентов изменится первый показатель при изменении второго на 1%.

The sensitivity of market to changes in price, income or other market factors is reflected by measure called elasticity.

Demand is said to be:

elastic,	if ed>1 1<ed<	=>such goods have many substitutes
inelastic,	if ed< 1 0 <ed< 1	=> such goods immune to change in price
unitary elastic,	ed = 1	=> no changes in total spending
perfectly elastic,	if ed = 	=> products are perfect substitutes => no one has big market share
perfectly inelastic	if ed = 0	=> no substitutes => willing to pay any price

Тут он короче тупо вам начертит какой нить график и вы должны ответить эластичный он или нет

7. Peculiarities of land and labor markets.

Peculiarities of land resources determine pricing:

• Natural scarcity – естественная ограниченность – the amount of land is fixed and can’t be increased to satisfy increasing demand.

• Immobility – недвижимость – the land can’t be thrown.

Peculiarities of labor market.

a)Long duration of relationship – продолжительные отношения.

b)Non-monetary factors – присутствуют не только деньги, но и другие условия.

c)Institutional structures – labor market is regularly (профсоюз) for example setting minimum wages.

7. Two theories which explain nature of interest.

Nature of interest can be explained by two theories:

• Real theory of interest

According to this theory people values goods today that goods in future in order to make person refuse form today’s groups competition. He or she should be rewarded, such reward is called ‘interest’. It is the price of refusal today the good consumption.

• Monetary theory of interest

According to this theory people value money in liquid form in order to make person refuse from liquidity. He or she should be rewarded, such reward is called ‘interest’. It is the price of refusal from liquidity.

7. How to determine market structure.

You can determine market structure by:

Number of firms in industry:

degree of concentration is shown by Herfindahl – Hirschman index

By Type of good:

Goods can be:

a)homogeneous-однородный товар(соль)

b)diversified-есть разница между товаром(сотки)

c)unique-не имеет заменителя(косм. Оборудование)

Degree of influence on price:

The more the influence on price is, the more monopolized market is.

Number of entry and exit barriers-условия затрудняющие выход на рынок.

1. exclusive rights

2. owning rare resources

3. copyrights

4. illegal methods

5. economies of scale