Ben says that "An increase in the tax on beer will raise its price." Holly argues that "Taxes should be increased on beer because college students drink too much." We can conclude that: Ben's statement is normative, but Holly's is positive. Holly's statement is normative, but Ben's is positive. Both statements are normative. Both statements are positive.

There are two types of statements - positive and negative. A positive statement is based on facts…

Answered: Ben says that "An increase in the tax…

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter1: Introducing The Economic Way Of Thinking

Section1.6: Why Do Economists Disagree?

Problem 2.2YTE

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Ben says that "An increase in the tax on beer will raise its price." Holly argues that "Taxes should be increased on beer because college students drink too much." We can conclude that:

Ben's statement is normative, but Holly's is positive.

Holly's statement is normative, but Ben's is positive.

Both statements are normative.

Both statements are positive.

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