ECON 1110 Lecture Notes - Granville Island, Positive Statement
Document Summary
Normative statement- about what ought to be as opposed to what actually is (are not testable, consist of statement of someone"s feelings, emotions, beliefs) Positive statement- what actually is (was or will be) as opposed to what out to be (can be tested and statement can be revealed to be true or false) Theories are constructed to explain things (theory of demand and supply) Assumptions- motives, direction of causation, conditions of application. Markets defined as being where buyers and sellers come together in order to trade. Before markets were in particular places ie granville island but now we have mail order and ebusiness. Look at suppliers and sellers and study supply. Demand- consumers want and need various goods/services and their demand for them expressed their preference. Price of related goods (compliments or substitutes) income. Supply- amount of commodity producers want to sell during some time period. Price of other goods (expectation of future prices)
