Hi, need to submit a 4250 words essay on the topic Lipstick sales in the Recession.
Women although consider lipstick an essential but purchase it as a luxury to give themselves satisfaction. The results of the research have been supported by economic theories of Keynes, the income effect, the lipstick index and the elasticity of income theories. The results defy the substitution effect and basic economic theory of demand and supply.
An interesting point is that lipstick sales are being depended upon to assess recession however, the trend of buying lipstick is changing and women are substituting it for lip gloss. Thus the question arises as to how much can the lipstick index be relied upon or whether the theory should be revised to include a certain pool of cosmetics for the theory to be more dependable.
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