Introduction
The utilization of laptop computers in Vietnamese society has significantly increased as the country is becoming more and more modernized. Concerning microeconomic level, this paper will inspect the laptop market of Vietnam in recent years.
Question 1 http://www.slideshare.net/dimvn/dim-042015-laptop-report http://www.di-onlinesurvey.com/2015/04/17/laptop-use-in-vietnam/ http://vneconomy.vn/cuoc-song-so/dell-asus-thong-linh-top-10-laptop-ban-chay-thang-7-20150810093435333.htm Question 2
Industry concentration is an economic measurement of how the market share in a specific industry is divided between the companies operating within it. If one or a few companies dominate the majority of a market, that industry is said to be highly…show more content… Price elasticity of demand is a term in economics often used when discussing price sensitivity. If a small change in price is accompanied by a large change in quantity demanded, the product is said to be elastic (or responsive to price changes). Conversely, a product is inelastic if a large change in price is accompanied by a small amount of change in quantity demanded.
Price elasticity of demand measures the responsiveness of demand to changes in price for a particular good. If the price elasticity of demand is equal to 0, demand is perfectly inelastic (i.e., demand does not change when price changes). Values between zero and one indicate that demand is inelastic (this occurs when the percent change in demand is less than the percent change in price). When price elasticity of demand equals one, demand is unit elastic (the percent change in demand is equal to the percent change in price). Finally, if the value is greater than one, demand is perfectly elastic (demand is affected to a greater degree by changes in…show more content… Over a longer period of time, the level of production can be adjusted greatly as production processes can be altered, additional workers can be hired, more plants can be built, etc. Therefore, elasticity of supply is expected to be greater over longer periods of time.
Tax incidence
Consumption tax is a tax on the purchase of a good or service. Consumption taxes can take the form of sales taxes, tariffs, excise and other taxes on consumed goods and services (Investopedia n.d).
A tax on a particular good or service is called an excise tax.
Shifts market supply curve upward by amount of tax
Buyers and sellers share in the payment of an excise tax
Called tax shifting: Process that causes some of tax collected from one side of market (sellers) to be paid by other side of market (buyers)
For a given supply curve, the more elastic is demand, the more of an excise tax is paid by sellers
The more inelastic is demand, the more of the tax is paid by buyers
For a given demand curve, the more elastic is supply, the more of an excise tax is paid by buyers
The more inelastic is supply, the more of the tax is paid by sellers
Question