Question

An example of a common microeconomic model would be that blank? generally demands (or purchases) more goods or services at lower prices where blank?   would prefer to sell more goods at higher prices.

Blank? (i think normative) economics is a term used to describe the economic outcomes that are desired based upon the values of the individual or group proposing the outcome.

An example of a cultural norm operating in the U.S. economy would be?

Answer 1

An example of a common microeconomic model would be that price of fruits would be determined by the demand and supply of fruits in the market. Since microeconomics deals with individual consumers firms , the example of fruits is a microeconomic example as market for a only a single good is considered .

Generally demands (or purchases) more goods or services at lower prices where income elasticity of good is positive . Demand for goods with positive income elasticity increases when prices fall and vice - versa.

Sellers would prefer to sell more goods at higher prices .

Normative economics is a term used to describe the economic outcomes that are desired based upon the values of the individual or group proposing the outcome. It is subjective and value based .

An example of a cultural norm operating in the U.S. economy would be the culture of tipping waiters , valets and other service providers.