Kinh tế vi mô FTU - Bài tự luận tham khảo

MICROECONOMIC ESSAY USING SUPPLY AND DEMAND MODEL TO ANALYZE THE VIETNAM'S MEDICAL EQUIPMENT MARKET Page 1 TABLE OF CONTENTS I. INTRODUCTION 3 II. MARKET STATUS 4 1. NOTIONS................................................................................................................................................................4 1.1. Market.............................................................................................................................................................4 1.2. Demand...........................................................................................................................................................4 1.3. Supply..............................................................................................................................................................6 1.4. Equilibrium...................................................................................................................................................8 1.5. Elasticity.........................................................................................................................................................9 1.6. The intervention of Government.........................................................................................................9 2. GENERAL OVERVIEW OF THE MEDICAL EQUIPMENT MARKET............................13 2.1. Medical equipment market in several countries........................................................................13 2.2. Medical equipment market in Vietnam.........................................................................................16 3. MARKET STATUS.......................................................................................................................................... 17 3.1. The demand of medical equipment in Vietnam......................................................................... 17 3.2. The supply of medical equipment.................................................................................................... 18 3.3. The effection from the COVID-19 pandemic..............................................................................19 3.4. The price fluctuation..............................................................................................................................21 3.5. The government's impact.....................................................................................................................22 1.1. The import-export trade of medical equipment........................................................................ 24 1.2. Future expectation.................................................................................................................................. 25 2. OTHER COMPLEMENTS..........................................................................................................................28 2.1. Prospects......................................................................................................................................................28 2.2. Solutions.......................................................................................................................................................29 2.3. Conclusion.................................................................................................................................................. 31 III. LIST OF REFERENCES 32 IV. DIVISION OF WORK 35 Page 2 I. INTRODUCTION Over the last decade, Vietnam has experienced rapid economic and population growth, making it an attractive investment destination for foreign investors in the public health sector. Vietnam's healthcare industry has been one of the country's development priorities as it has received increased financial support and investment incentives from the government over the years. In addition to economic development, the COVID 19 pandemic is also impacting increasing demand in Vietnam's medical sector. Throughout the epidemic, government support for health care costs and access to health care has increased, and the industry has reiterated its stance as a top priority. In the medical sector, the medical device industry is one of the most promising sub-sectors for foreign investors, as most of Vietnam's medical devices are imported by internationalymultinationals. Understanding the impact of the clinical gear market, we chose to pick the theme: "Utilizing the supply and demand model to analyze the medical equipment market in Vietnam" to advance as well as investigate all the more profoundly the clinical gear market as per this model as well as propose some solutions in light of the hypothesis for the market to create more grounded. Page 3 II.MARKET STATUS 1. NOTIONS 1.1.Market Market: The market is a structure in which sellers and buyers interact with each other to define prices and output of goods and services. The function of the market is price-fixing so prices and quantities cannot be considered separately. Classification of Market: - The goods market: The exchange of final products and services mainly occurs. - Factor (resource) market: factor of manufacturing are exchanged. 1.2.Demand Demand (D): Demand describes the quantity of a good or service that consumers are willing to buy at different prices in a particular time period, other things are held equal. Quantity demanded (Qd): Quantity demanded describes the quantity of a good or service that consumers are willing to buy at a given price in a particular time period, other things are held equal. The demand curve: A demand curve is a curve that geometrically describes the relationship between quantity demanded and price, and it is a down-ward sloping curve. When the price of goods and services increases, consumers will buy less products and vice versa. The demand curve: ▪ At the price P1, the quantity demanded is Q1 ▪ At the price P2, the quantity demanded is Q2 Page 4 Law of demand: P↑→Q↓ P↓→Q↑ All other things are held equal, ordinary consumers will buy more of a good when the price level falls and they will buy less if the price level rises. The quantity demanded of goods and services has a relationship with the price, which is called the Law of demand. Factors affecting the demand curve: Consumer’s income (I): - As income increases, consumers will be willing to spend more on normal goods, and less on inferior ones. In this case, the demand for normal goods will increase and its curve will shift rightward (I↑→D↑), but for inferior goods, the demand see an opposite trend (I↑→D↓) - Conversely, as income decreases, the demand for normal goods will decrease and its curve will shift leftward (I↓→D↓). The demand for inferior goods will also see an opposite trend (I↓→D↑). Taste (T): - If consumers increase their tastes and preferences for a product, the demand for that item will increase, causing the demand curve to shift rightward (T↑→D↑). - Conversely, if consumers decrease their tastes and preferences for a product, the demand for that item will also decrease, causing the demand curve to shift leftward (T↓→D↓). Price of substitutions (Ps): - When the price of one product increases, it will cause the demand for another product (which can be substituted) to increase because consumers will switch to cheaper alternatives, causing the demand to shift rightward (Ps↑→D↑). - Conversely, when the price of one product decreases, the demand for another product will decrease and its curve will shift leftward (Ps↓→D↓). Price of complements (Pc): - When the price of a complementary good falls, it will cause an increase in the demand of another product. This is because the consumers will be motivated to buy more product if its complementary one is cheap, causing the demand curve to shift rightward (Pc↓→D↑). - Conversely, when the price of a complementary good goes up, the demand for another product will decrease and its curve will shift leftward (Pc↑→D↓). Page 5 Number of buyers (N): - If the number of buyers in the market increases, the demand for the commodity will also increase (N↑→D↑). - Conversely, if the number of buyers in the market decreases, the demand for the commodity will also decrease (N↓→D↓). Consumer’s expectation (E): - Consumers who have a positive prediction (good expectation) about the expected future price of a good, the demand of that good will increase and its curve will shift rightward (E↑→D↑). - Conversely, consumers who have a negative prediction (bad expectation) about the expected future price of a good, the demand of that good will decrease and its curve will shift leftward (E↓→D↓). 1.3. Supply Supply(S): Supply describes the quantity of a good or service that producers are willing to sell at different prices during a particular time period, other things being equal. Supply is the relationship between quantity supplied and price. Quantity supply (Qs): Quantity supply describe the quantity of a good or service that producers are willing to sell at a given price in a particular time period, other things being equal. Supply curve: A supply curve is a curve that geometrically describes the relationship between quantity supplied and price, usually sloping up from left to right because of the positive relationship between price and quantity demanded. When the prices of goods and services rise, producers will have an incentive to produce more goods and vice versa. Law of supply: P↑→Q↑ P↓→Q↓ All other things being equal, producers will have an incentive to produce more quantities of a good when the price level rises, and vice versa. The quantity supplied of goods and services has a positive relationship with the price, this relationship is the law of supply. Profit = Total revenue (TR) - Total cost (TC) = P.Q -TC Page 6 P↑→ (P.Q)↑ → Profit↑ → Q↑ Factors affecting the supply curve: Price of other goods: - The supply of one good may decrease if the price of another good increases, causing producers to reallocate resources to produce larger quantities of the more profitable one. - Conversely, the supply of one good may increase if the price of another good decreases. Price of inputs (Pi): - Higher manufacturing costs will make a product more expensive and sellers therefore earn less profit, so they are motivated to produce fewer. This causes a decrease in supply and will shift the supply curve leftward (Pi↑→S↓). - Conversely, lower manufacturing costs will cause an increase in supply and will shift the supply curve rightward (Pi↓→S↑). Technology (Te): - A technological improvement that reduces costs of production will cause an increase in supply and shift supply to the right, causing a greater quantity to be produced at any given price (Te↑→S↑). - Conversely, out of date technologies will cause a decrease in supply and shift the supply curve to the left, causing fewer quantity to be produced at any given price (Te↓→S↓). Tax (Ta): - Sellers/Firms view tax as costs, so higher tax means higher costs. This will cause a decrease in supply and shift the supply curve leftward (Ta↑→S↓). - Conversely, lower tax will cause an increase in supply and shift the supply curve rightward (Ta↓→S↑). Number of sellers (Ns): - If there are numerous sellers, the production scale of an industry will expand, and the supply of goods and services will therefore increase, causing a greater quantity to be produced at any given price and the supply curve will shift to the right (Ns↑→S↑). - Conversely, if there are a few sellers, the supply of goods and services will decrease and its curve will shift to the left (Ns↓→S↓). Expectation of sellers (Es): Page 7 - If a producer has a positive prediction of the expected future price of a good, the supply of this good will increase and its curve will shift rightward (Es↑→S↑). - Conversely, if a producer has a negative prediction of the expected price of a good, the supply of this good will decrease and