5. COLLUSION AND OBSERVABILITY OF DEMAND An investigator at the Department of Justice believes that there might be collusion in an industry where market demand can readily be observed by all firms. In each period market demand can experience shocks, but shocks are known to be uncorrelated across periods. The analyst points out that prices in this industry are moving pro-cyclically and argues that this is a warning signal that collusion might be taking place in this industry. Does the analyst have a point? Justify your