"An increase in the price of oranges will increase the demand for grapefruits." This statement is an example of a normative economic statement.

Question

Quizplus · Accepted Answer

The statement is actually an example of a positive economic statement, which describes the relationship between the price of oranges and the demand for grapefruits. A normative economic statement, on the other hand, would involve a value judgment about what should be or what is desirable.

"An Increase in the Price of Oranges Will Increase the Demand