Self study 4 Task Make up sentences with the following words

Task 3 . Write the summary to the given text
Demand for Goods and Services
When economists talk about prices, they are less interested in making judgments than in gaining a practical understanding of what determines prices and why prices change. Consider a price most of us contend with weekly: that of a gallon of gas. Why was the average price of gasoline in the United States $3.71 per gallon in June 2018? Why did the price for gasoline fall sharply to $1.96 per gallon by January 2020? T o explain these price movements, economists focus on the determinants of what gasoline buyers are willing to pay and what gasoline sellers are willing to accept.
As it turns out, the price of gasoline in June of any given year is nearly always higher than the price in January of that same year. Over recent decades, gasoline prices in midsummer have averaged about 10 cents per gallon more than their midwinter low .The likely reason is that people drive more in the summer, and are also willing to pay more for gas, but that does not explain how steeply gas prices fell. Other factors were at work during those 18 months, such as increases in supply and decreases in the demand for crude oil. Economists use the term demand to refer to the amount of some good or service consumers are willing and able to purchase at each price. Demand is fundamentally based on needs and wants if you have no need or want for something, you won't buy it. While a consumer may be able to differentiate between a need and a want, but from an economist’ s perspective they are the same thing. Demand is also based on ability to pay . If you cannot pay for it, you have no effective demand. By this definition, a homeless person probably has no effective demand for shelter .
What a buyer pays for a unit of the specific good or service is called price. The total number of units that consumers would purchase at that price is called the quantity demanded. A rise in price of a good or service almost always decreases the quantity demanded of that good or service. Conversely, a fall in price will increase the quantity demanded. When the price of a gallon of gasoline increases, for example, people look for ways to reduce their consumption by combining several errands, commuting by carpool or mass transit, or taking weekend or vacation trips closer to home. Economists call this inverse relationship between price and quantity demanded the law of demand. The law of demand assumes that all other variables that affect demand are held constant.
Answer
Economists use the term demand to refer to the quantity of some good or service that consumers are willing and able to buy at each price. Demand is mainly based on needs and wants - you don't buy something if you don't need it. A consumer may differentiate between need and want, but from an economist's point of view, they are the same thing.
An increase in the price of a good or service almost always reduces the quantity demanded of that good or service. Conversely, a decrease in price increases the quantity demanded. Economists call this inverse relationship between price and quantity demanded the law of demand.
But when economists talk about prices, they are less interested in drawing conclusions than in gaining a practical understanding of what determines prices and why prices change.
For example, mid-summer gasoline prices have averaged 10 cents a gallon higher than their winter lows over the past few decades. This is because people drive more in the summer and are willing to pay more for gas. Thus, what a buyer pays for a particular unit of goods or services is called price. The total number of units that consumers will buy at this price is called the quantity demanded.