Business, 29.07.2019 17:10, jessie6516
In a market in which demand is price inelastic, producers can gouge consumers and the government should set high standards of conduct for producers to ensure that consumers get a fair deal." which parts of this statement are positive and which are normative? explain how you might go about testing the positive part. the statement has two parts: 1. in a market in which demand is price inelastic, producers can gouge consumers. 2. in a market in which demand is price inelastic, the government should set high standards of conduct for producers to ensure that consumers get a fair deal. a. statement 1 is a normative statement and statement 2 is a positive statement. b. both statements are normative. c. statement 1 is a positive statement and statement 2 is a normative statement. your answer is correct. d. both statements are positive. defining "gouge" as "charge a price much higher than cost", the statement "in a market in which demand is price inelastic, producers can gouge consumers" might be tested by a. estimating price elasticities of demand and observing prices and costs b. the total revenue test c. observing whether the item being gouged is a luxury d. observing whether the item being gouged is a necessit
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