Economic Behaviour

Economic behavior refers to the choices individuals, businesses, and governments make regarding how they use resources to satisfy their needs and wants. It involves decisions about purchasing, saving, investing, and producing goods or services, often influenced by factors like prices, income, preferences, and available options. Understanding economic behavior helps explain the patterns and trends in markets, showing how people respond to economic incentives and constraints to allocate limited resources efficiently. It shapes the overall functioning of an economy and informs policies aimed at improving economic well-being.