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MICROECONOMICS

TOPIC: MILK TEA (GROUP 1)<br>2019-2020 AT TON DUC THANG UNIVERSITY

lindanguyen27301
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MICROECONOMICS

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  1. Five important factors affecting supply in the market

  2. The first store of Gong Cha in Vietnam, we sold about 50-70 cups/day. But now, we got more than 50 stores nationwide. Even though brands can't show specific data relevant to total revenue, but the number of stores makes me understand a part about it.

  3. From 2007-2008: 10.000-15.000 VNĐ • Until 2014-2019: 30.000-50.000 VNĐ • From 2019-present: 60.000-132.000VNĐ

  4. The costs of production The total revenue from the store The profit I will get

  5. Five important factors affecting demand in the market

  6. Follow line 3 & line 5 (picture 2)From the survey based on 80 persons that I had…

  7. **DEMAND: - Young people drink milk tea on a regular basis. - The milk tea from Taiwan is a "hot trend" and liked by Vietnamese persons. - But nowadays, people more interested in their health and save the environment, news negative might affect many brands of milk tea if they don't change follow the demand of the market. So, demand increasing but can ambiguous! **SUPPLY: - Vietnam is a "gold mine" for big brands from Taiwan. - Many brands also choose materials from our country to make milk tea. So, at present supply increasingly but in the future, it depends on the demand of costumers/buyers in the market.

  8. - Suppose we have the information that drinking milk tea is harmful to health, causing cancer, obesity, or diabetes. Using plastic materials that cause environmental pollution. => Taxes on products to decrease production or drink it.

  9. *Elasticity of demand: the consumer will buy fewer goods if the price increase. -For example, between milk tea and fresh pearl milk easy to replace together => more elastic. -With students, milk tea is an essential good => no elastic. -With adults, milk tea is a luxury good => elastic. *Elasticity of supply: depend on the flexibility of sellers in change the quantity milk tea that they produce.

  10. 1 / Milk tea is a substitute product If not drinking milk tea, most consumers will choose other drinks. 2 / Milk tea today is gradually revamping many other ingredients such as fruit, ice cream, cakes, fresh milk to meet consumer needs. From there both the supply and demand curves shift to the right. 3 / The supply and demand of milk tea in the next few years will all change depending on its own factors.

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