Reference no: EM133232249

1.Applications of microeconomics might be either constructive or prescriptive in nature.

2.A positive microeconomics analysis not only outlines how the economy behaves but also informs what to anticipate if certain circumstances change.

3. If a vehicle manufacturer decides to increase their pricing, positive microeconomics predicts that customers would purchase fewer automobiles than they did previously.

4. In the event that a significant copper mine in South America goes out of business, the price of copper is likely to go up since there will be less of it available on the market.

5. An investor may be able to understand why the stock price of Apple Inc. could drop if customers purchase less iPhones with the aid of positive microeconomics

6. If the minimum wage were raised, The Wendy's Company may be forced to recruit fewer people, which might be explained using microeconomic theory.

7.These explanations, conclusions, and predictions of positive microeconomics can then be applied normatively to prescribe what people, businesses, and governments

8.should do in order to attain the most valuable or beneficial patterns of production, exchange, and consumption among market participants.

9.This can be done by prescribing what people, businesses, and governments should do in order to attain the most valuable or beneficial patterns of production, exchange, and consumption among market participants.

10.This extension of the implications of microeconomics from what is to what ought to be or what people ought to do also requires at least the implicit application