$$

$1.$ Suppose that hM $=0\mathrm{.}75$ and hX $=0\mathrm{.}5$ for a given country:

a$.$ Are import demands elastic or inelastic in this case?

b$.$ Does the Marshall$-$Lerner condition hold? How do we know?

c$.$ Suppose that the domestic price of this country$$s import rise by $10$ percent following a depreciation of the currency. What will happen to the quantity that it imports?

d$.$ Suppose that the foreign currency price of this country$$s export price falls by $10$ percent following a depreciation. What will happen to the quantity that it exports?