In 2023, an article in the Financial Times quoted Michael Hicks, an economics professor at Indiana’s Ball State University, as saying that RVs are a

“classic disposable income and interest rate sensitive item.”

The article also noted that “demand for RVs is acutely sensitive to business cycles.”

a. Are Hicks’s observation and the sensitivity of RV demand to business cycles related? Briefly explain.

b. Throughout the business cycle, would you expect spending on RVs to fluctuate more or less than the demand for televisions? Briefly explain.