微观经济学英文版presentation.pptVIP

Analyse the luxury consumption by microeconomics Background With the rapid development of Chinese economy, China is gradually becoming a force in luxury consumer market. So far, almost all of the world‘s luxury brands in China have branches, flagship stores also are emerging. The number of Chinese consumers has been the third in Louis Vuitton’s global customer base(客户群). On behalf of the status and wealth of the senior clocks and watches, jewelry manufacturer Cartier. Since 1992 it has started business in China, at present it has three boutiques and over 30 pos. Why luxury has so big attraction？ What is a luxury? Definition: the goods of the income elasticity of demand is greater than 1 are luxury, the demand is growing faster than income growth. If E stands for luxury of the income elasticity of demand, and if E 1 it means luxury is elastic. Luxury properties: Scarcity High prices, high quality Has a strong cultural features, need time accumulation and contains rich history and culture, stand for spiritual, inspiration and taste A symbol Economic Analysis of the luxury consumption 1. the scarcity of the luxury : ① natural scarcity ② technical scarcity ③ limited edition. . In supply and demand theory, we know that the price of the product depends on the marginal utility of consumption of the last unit of product, according to the law of diminishing marginal utility, scarcity items can only sell to the high price. 2. the demand curve of the luxury goods: factors: The price of goods and the value of goods ; After-sales service; The relative price of other luxury; Income and personal wealth; Preferences, social and cultural habits; The level of quality of residents, level of education; Tax policy. 3. the impact of the tax on luxury consumption: According to the substitution effect , Levying unit tax on luxury goods will reduce the demand for luxury goods and increase the demand for other co