“In a market in which demand is price inelastic, producers can gouge consumers and the government should set high standards of conduct for producers to ensure that consumers get a fair deal.” Which parts of this statement are positive and which are normative? Explain how you might go about testing the positive part.

Use the following information to work Problems 7 and 8.

Valentine roses On Valentine’s Day 2015, 257 million roses were sold for about double the normal price. On a normal day, 3 million roses are sold.

Source: aboutflowers.com, 2015