Study of the Impact of Income on Commodity Consumption Using Simple Linear Regression Model

Consumption is one of the most important basic variables in the national economy, because it is linked to other economic variables such as production, savings and investment according to the concept of economic theory, and because it comes at the forefront of the topics facing the economies of countries, especially developing ones in general and the Iraqi economy in particular, which are characterized by limited resources that they face in consumption, and that consumer spending represents the final outcome of the activity The economic activity practiced by individuals to satisfy their needs and desires, and thus is the last link in the long chain of economic and social processes, and that its development quantitatively and qualitatively is the ultimate goal of economic development, so the caliber of failure or success of development is to increase actual consumption in the long term. One of the important and main aspects of national planning is that the process of proportionality between investment and consumption is one of the most difficult and complex things facing the economic planner and that the process of economic development is supposed to be seen as a deliberate process. It continues to work to create social, political and technological conditions, through changes in the economic structure with the intention of exploiting resources and energies, and thus is the process of raising the standard of living by achieving continuous increases in the average real income of individuals. [1] [8] 1. Through the study of consumer behavior and because it does not reflect the analysis of total spending only, but also in how the total expenditure is distributed to groups of goods and services, in the analysis of household consumption data, the spending pattern reflects the pattern of distributing the total expenditure of the family or individual for a specific period of time on the main groups of goods and services so that they reflect the behavior of consumers in satisfying their needs and desires, which are of great importance in several areas that can be summarized as follows: [2] [3] Formulating policies for foreign trade (imports, exports) to ensure the provision of citizens' requirements of necessary goods, reduce luxury goods and encourage citizens to save. 2- Contribute to determining the nature of local production and developing the policy associated with it. 3- Develop the right economic plans to increase income and redistribute it in order to achieve an increase in the average per capita. 4- Monitoring changes in the tendencies and desires of society due to changes in the standard of living and the ability to direct the consumption habits of the family and the individual.