Economics Assignment

Lecturer: Kathy Peters

Subject: Principles of Economics

Student name: Chung Ngoc Anh Nhi

Individual Assignment

The Analysis For Perfume Market In

Vietnam

Table of Contents

1. Introduction 3

2. Perfume Characteristics 4

2.1 The elasticity of demand 4

2.2 The elasticity of supply 5

2.3 The market structure 6

2.4 Opportunity costs 7

2.5 Type of costs 7

3. Demand and Supply Analysis 8

3.1 Demand 150 8

3.2 Supply 150 9

4. References 10

1. Introduction

In recent years, the society and economy have been growing very fast. It has lead to human demand increase rapidly on many aspects such as food, clothe, transportation, etc. Besides that, beauty cares need also becoming a common issue. Some products like shampoo, shower, and cosmetic are important factors. And perfume is also a factor that contributes a complete beauty. Perfume makes both women and men more glamorous. Gradually, it becomes indispensable thing to everyone.

These are some variable luxurious perfume (Chernicoff, Kemper, & Toth, 2011)

2. Perfume Characteristics

This section will analyse the price elasticity of demand and supply and the market structure for perfume. Besides, it will identify the opportunity costs that consumer pays when consuming perfume and some cost arise while producing perfume.

3.1 The elasticity of demand

In Vietnam, the demand for grooming and beauty care usually goes up (Market Research, 2011) and it is like a routine. Cosmetic in general and perfume in particular does not only serve for parties, but also for work. Therefore, changes in perfume demand are quite low so it is inelastic demand. However, there are three determinants might affect to the price elastic of demand when fixing the price:

* Number of substitute goods: Perfume is a luxurious product with high price. Consequently, some people won’t be able to afford it. To alternate it, many substitute goods have been released such as...