Explain carefully,, the difference between positive and normative statements, and give an example of each kind of statement.2.For each of the following situations in the Canadian wheat market, using explanations and graphs, determine the impact on equilibrium price and quantity:

(a)an increase in consumer incomes.

(b)scientific analysis determines that eating wheat causes high blood pressure.

(c)the government reduces subsidies to wheat farmers and forces them to pay higher taxes.

3.Explain, in detail, and without mathematical examples, the difference between absolute and comparative advantage.Which is more important in determining trade patterns, absolute advantage or comparative advantage?Why?

4.Suppose that Calvin can produce 4 snowmen or 400 snowballs per day, and Hobbs can produce 5 snowmen or 500 snowballs per day.Will it pay Calvin and Hobbs to specialize and trade?