"An increase in the price of gasoline will increase the demand for hybrid vehicles." This statement is an example of a positive economic statement.

Question

Quizplus · Accepted Answer

This statement is a positive economic statement because it makes a statement about a cause-and-effect relationship in the economy. It predicts that an increase in the price of gasoline will lead to an increase in the demand for hybrid vehicles. This statement can be tested and verified using empirical evidence.

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