In this paper, we establish an analytic foundation for a fully non-linear equation σ2 σ1 = f on manifolds with metrics of positive scalar curvature and apply it to give a (rough) classification of such manifolds. A crucial point is a simple observation that this equation is a degenerate elliptic equation without any condition on the sign of f and it is elliptic not only for f > 0 but also for f < 0. By defining a Yamabe constant Y 2,1 with respect to this equation, we show that a manifold with metrics of positive scalar curvature admits a conformal metric of positive scalar curvature and positive σ 2 -scalar curvature if and only if Y 2,1 > 0. We give a complete solution for the corresponding Yamabe problem. Namely, let g 0 be a positive scalar curvature metric, then in its conformal class there is a conformal metric with σ 2 (g) = κσ 1 (g), for some constant κ. Using these analytic results, we give a rough classification of the space of manifolds with metrics of positive scalar curvature.