Thor Industries manufactures Airstream and other recreational vehicles (RVs). In In June 2023, an article in the Wall Street Journal stated that the inventories of RVs held by Thor dealers had risen and that the dealers were “racing to sell through model year 2022 inventory that is still sitting on lots around the country.”

a. If dealer inventories of RVs were at high levels, what must have been true of the relationship between sales at Thor’s dealers and Thor’s production of RVs?

b. Why might Thor and its dealers have allowed inventories of RVs to rise to such high levels?

c. What are the likely consequences of the high levels of inventories for employment in Elkhart, Indiana in the following months? What additional information would you need in order to be confident about your answer?