The Heckscher-Ohlin theorem explains why the U.S. both imports and exports cars.

Since income and substitution effects point in the same direction for normal goods, the leisure demand curve will be shallower if leisure is a normal good than if leisure is an inferior good.

Answer the following statement true (T) or false (F)

If a 1% change in price leads to a 2% change in quantity demanded, then the elasticity of demand is

A. 0.5. B. 1.0. C. 1.5. D. 2.0.