Behavioral economists focus on the assumption that
A) consumers have limitations that prevent them from examining all possible choices when they make decisions.
B) consumer behavior cannot be predicted by economics.
C) consumers are irrational and so they do not seek to maximize utility.
D) consumer choice is perfectly predictable by basic economic theory.

Question

Quizplus · Accepted Answer

Behavioral economists assume that consumers have limitations such as cognitive biases, limited attention, and bounded rationality, which prevent them from examining all possible choices when making decisions. This assumption challenges the traditional economic assumption of perfectly rational decision-making.

Behavioral Economists Focus on the Assumption That