Figure 1 2 and 3 respectively have good information about na

Figure 1, 2 and 3 respectively have good information about national home price indices, cabinet net sales and household income growth. Clearly describe what the data is revealing about the nature of the national home price indices, cabinet net sales and household income growth home rate trend movements overtime pertaining to the market demand and supply conditions for Masterbrand Cabinets. And how the national home price indices, cabinet net sales and household income growth trend movements overtime are related to the determinants market demand and supply.

US CONSUMER SPENDING 12200 12035.227 2065.90 12000 11916.576 11852.958 11758.04 11800 11702.12 11618.1 11537.7 11600 11430.5 11379.3 11400 11304.6 11227.9 1200 Jul 2015 Jan 2016 Jul 2016 Jan 2017 Jul 2017 Jan 2018 SOURCE: TRADINGECONOMICS.COM U.S. BUREAU OF ECONDMIC ANALYS

Solution

The consumer spending graph clearly shows that there has been a constant increase in the consumer spending over time. It grew at a CAGR of 7.46% year on year. This shows that consumer spending is picking up after the 2008 financial crisis. This can also be verified from the Home Price Index graph and the net sales. After 2009, there has been a rapid recovery in the housing prices and net sales. However, from the real mean household income growth we can see that this growth in consumer spending and housing prices was not due to uniform rise in incomes across all classes. The rise in income has been skewed towards higher income class that is the upper 10% of people. Hence, although there has been a rise in net sales of houses and consumer spending, most of it has been stemmed by a rising demand in the upper income class of the population. This means there has been an increase in the inequality amonst the people of the country. Hence, demand is rising only from the upper segment while demand is falling from the lower income segment. It can be seen since 2000, incomes of all the income groups except top 5% and top quintile, have been falling. This kind of skewed rise in demand and prices is not healthy for the society as it might lead to societal unrest.