1. What are the impacts of the macroeconomic business cycle on demand in used car industry? Is demand in your industry procyclical or countercyclical? Explain. If demand in your industry is insensitive to the business cycle explain why this is so? {Definitions: procyclical demand = product demand increases during macroeconomic business cycle expansions and decreases during macroeconomic business cycle recessions, countercyclical demand = product demand decreases during macroeconomic business cycle expansion and increases during macroeconomic business cycle recession.]
2. Are there any major impacts of the macroeconomic business cycle on supply in used car industry - i.e. does the business cycle impact the used car industry's ability to acquire inputs such as labor, capital or materials? Explain. Note: Do not discuss responses to demand side changes but look for impacts that are independent of demand changes.