Behavioural 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

Behavioural economics studies situations where consumers and firms do not appear to be making choices that are economically rational, such as making decisions based on emotions, biases, or limited information. This field of study seeks to understand and explain these deviations from traditional economic models.

Behavioural Economics Refers to the Study of Situations