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Explain the basic logical Vue.js app organisation

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A Vue.js application consists of a root Vue instance created with new Vue, optionally organized into a tree of nested, reusable components. For example, a todo app’s component tree might look like this:

Root Instance

└─ TodoList

   ├─ TodoItem

   │  ├─ DeleteTodoButton

   │  └─ EditTodoButton

   └─ TodoListFooter

      ├─ ClearTodosButton

      └─ TodoListStatistics

All Vue components are also Vue instances.