Cross elasticity of demand could be used to measure the responsiveness of the quantity demanded of swimming pools to a change in the price of picnic tables.

Suppose that imports and exports in an industry are $100 million and $200 million, respectively. Will the index of intra-industry trade for this industry rise, fall, or remain unchanged if exports fall to $100 million?

a. It will rise. b. It will fall. c. It will remain unchanged. d. There is not enough information to determine how the index will change.

In which market structure do firms exist in very large numbers, each firm produces an identical product, and there is freedom of entry and exit?

A) monopoly B) oligopoly C) only perfect competition D) only monopolistic competition E) both perfect competition and monopolistic competition