One reason that consumers and businesses might not act rationally is
A) it is difficult to obtain enough information about the elasticities of demand and supply.
B) they may not realise their actions are inconsistent with their goals.
C) consumer tastes change constantly.
D) they do not always value fairness when they make choices.

Question

Quizplus · Accepted Answer

Consumers and businesses may not always act rationally because they may not realise that their actions are inconsistent with their goals. This could be due to factors such as limited information, cognitive biases or other psychological factors that influence decision-making.

One Reason That Consumers and Businesses Might Not Act Rationally