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1. Is the Economy engaged in trade? explain your answer. 2. What is intra-industry trade? If the graph relates to intra industry trade, are X

1. Is the Economy engaged in trade? explain your answer.

2. What is intra-industry trade? If the graph relates to intra industry trade, are X and Y likely to represent cereal and chemicals (option A) or, wholegrain cereal and chocalte coated cereal (option B). explain your answer.

y 300 200 110 Y 55 100 200

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