microeconomic

. Which of the following two statements involves positive economic analysis and which normative? How do the two kinds of analysis differ?| a. Gasoline rationing (allocating to each individual a maximum amount of gasoline that can be purchased each year) is poor social policy because it interferes with the workings of the competitive market system. b. Gasoline rationing is a policy under which more people are made worse off than are made better off. . Suppose the price of regular-octane gasoline were 20 cents per gallon higher in Salalah than in [kl-m Do you think there would be an opportunity for arbitrage (i.e., that rms could buy gas in Wand then sell it at a prot in Salalah)? Why or why not? . In Example 1.3, what economic forces explain why the real price of eggs has fallen while the real price of a college education has increased? How have these changes affected consumer choices? . Use supply and demand curves to illustrate how each of the following events would affect the price of butter and the quantity of butter bought and sold: a. An increase in the price of margarine. b. An increase in the price of milk. . If a 3% increase in the price of corn akes causes a 6% decline in the quantity demanded, what is the elasticity of demand? Explain the dierence between a shift in the supply curve and a movement along the supply curve