Behavioral economics refers to the study of situations
A)where consumers and firms appear to make choices that are appropriate to reach their goals.
B)where consumers and firms appear to value fairness when they make choices.
C)where consumers and firms disobey the laws of demand and supply.
D)where consumers and firms do not appear to be making choices that are economically rational.

Question

Quizplus · Accepted Answer

Behavioral economics studies situations where consumers and firms do not appear to be making choices that are economically rational. This may include situations where people are influenced by their emotions, social norms, cognitive biases, or other factors that deviate from traditional economic assumptions.

Behavioral Economics Refers to the Study of Situations