Question

An increase in the price of gasoline will reduce the amount of gasoline purchased. This is

Answer 1

Answer:

In this case,the answer is option is B. or a positive economic statement.

Explanation:

• In Economics or any Social Science,a positive statement basically refers to an assertion,proposition,fact etc. that can be practically tested or evaluated by examining statistical or empirical data,information and/or facts.
• In this instance,the statement given represents an economic relationship between two economic variables,that is,price of gasoline and its consumption level.
• Therefore,this is a general statement that can be verified or evaluated by collecting and examining relevant numerical data or facts on the price of gasoline and its consumption level at various parts of the country.
• Following the data or numerical fact collection on both price of gasoline and its consumption or purchase level,a basic correlation study can be conducted between the two concerned variables to determine whether the gasoline price has any practical impact on its consumption level.