Behavioral economics suggests that people face human limitations that prevent them from examining every possible choice available to them, with the implication that

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Behavioral economics suggests that people face limitations such as bounded rationality and limited cognitive resources, which means they cannot consider every possible choice available to them. This implies that the standard assumptions of utility theory, such as perfect information and rational decision-making, may not accurately reflect how consumers behave in reality. As a result, the consumer optimum implied by utility theory may not be an appropriate approach to deriving demand curves.

Behavioral Economics Suggests That People Face Human Limitations That Prevent