Comprehension Questions

1. Why is it difficult to determine the right price?

2. Why is the seller interested in the price that produces the highest volume of sales at the lowest unit cost?

3.Why do many businesses follow unsound pricing policies?

4. In what way are agricultural prices decided?

5. How arc industrial products usually priced?

6. Why does the government usually set the prices for public utility services?

7. Why is it so important to know the levels of supply and demand when dealing with pricing?

8. Why is everything related by price?

Vocabulary Practice

Exercise 1. Put ills necessary word in the sentence.

1. It is very difficult... without sound |1 supply and

price policy. |demand

2. Of course we are interested in |

producing the ... with the lowest unit |2 volume of sales

costs. |

3.I decided to buy a new car at |3 trade-in

this company because they offered |allowance

the best... on my old model. |

4. The ... of this store are very beneficial |4 compete

for customer. |

5. Their business will fail if they |5 price policies

persue unsound.... |

6. The government usually ... for public |6 credit terms

utility services. |

7. In pure competition the forces |7 to set prices

of... operate. |

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Exercise 2. Make transformations according to the model.	\|	Dialogue

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