is “if the price of the gas goes up, people will buy less gass” a positive economics?
Answer (1)
Positive economics deals with facts, cause-and-effect relationships, and what actually happens in the real world. It is based on observation and can be tested or proven right or wrong. In this case, the statement predicts a behavior: when the price rises, demand falls. This follows the Law of Demand in economics, which states that when prices increase, quantity demanded decreases (all other things being equal).So yes, the statement is positive economics because it describes and predicts behavior without making a judgment.
