UM UGM 2004 UM UGM 2004

KUMPULAN SOAL UJIAN MASUK PERGURUAN TINGGI NEGERI Bidang Studi BAHASA INGGRIS 56

25. SPMB 2005

‘Until now I haven’t found any decent place to live in.’ ‘________________________________ A. Well, I’m very fortunate B. You have to find a better one C. I don’t mind sharing my flat with you D. You shouldn’t stay in your old place E. I guess, you like the place, don’t you SOAL BAHASA INGGRIS TAHUN 2004 UM_UGM

I. Road the text carefully, then choose the best alternatives to answer the question.

To be good consumer it is necessary for us to understand why prices and productions of goods are always changing. This following information is a simple law to help us understand it. When prices are low people will buy more, and when prices are high they will buy less. Everyone knows this. But at the same time, producers want higher prices for their goods when they make more goods. How can we find the best price for the goods? The Law of Supply and Demand is the answer to this question. According to this law, changes in the prices of goods cause changes in supply and demand. An increase in the price of goods causes an increase in supply-the number of that producer make. Producer will make more goods when they can have higher prices for the goods. At the same time, an increase in the price of the goods causes a decrease in demand-the numbers of goods the consumers buy. This is because people buy less when the price is high. Conversely, a decrease in the price causes an increase in demand and a decrease in supply. Business firms look at both supply and demand when they make decisions about prices and production. They look for the equilibrium point where supply equals demand. The equilibrium point is a point where the supply curve and the demand curve intersect. At this point, the number of goods produced will all be bought by the consumer at a certain price. This is called the equilibrium price. If the producers increase the price, or if they produce more, the consumers will not buy all of the goods. The producer will have a surplus-more supply than demand-so they must decrease the price in order to sell all of the goods. On the other hand, if they make fewer goods, there will be a shortage- more demand than supply-and the price will go up. According to the Law of Supply and Demand, the equilibrium price is the best price for the goods. The consumers and the producer will agree on this price because it is the only price that helps them both equally.

1. UM UGM 2004

Why does an increase in price cause an increase in supply? A. Consumers buy more goods when prices are high. B. Producers make fewer goods when prices are high. C. Producers want to sell all of their goods. D. Consumers will not buy all of the goods. E. Consumers will buy all of the goods.

2. UM UGM 2004

Why does a decrease in prices cause an increase in demand? A. Consumers buy fewer goods when prices are high. B. Producers make fewer goods when prices are law. C. Producers make more goods when prices are high. D. Consumers buy more goods when prices are law. E. Consumers buy goods even if the price is high. KUMPULAN SOAL UJIAN MASUK PERGURUAN TINGGI NEGERI Bidang Studi BAHASA INGGRIS 57

3. UM UGM 2004