Potential Impact of Retail Sales and Personal Income Forecasts on Essay

Potential Impact of Retail Sales and Personal Income Forecasts on Tobacco Industry - attempt ExampleBut regardless of the source, increases in the sell price of cigarettes causes a decrease in the quantity of cigarettes demanded, though the ratio is less than 1 to 1 when comparing the component part price increase to the percentage of consumption decrease. This shows that there is resistance to forgoing consumption altogether, and that few if any substitute goods are accessible to the consumer. The correlation between income and spending can be summed up as followsIn general, growth of retail sales follows the same path as the growth of personal income. However, this may not be the elusion during economic slowdown and expansion. In general, in the time of recession, retail sales tend to grow dilatory than personal income, while in the time of economic boom, retail sales tend to grow fast than personal income (Kovalyova & Zakharova, 2003).This implies that consumer spending ant icipates future economic conditions, and that so-called consumer confidence plays a bigger - or at least a leading - role in purchasing patterns than do actual changes in macroeconomic conditions.