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snow_lady [41]
2 years ago
12

Explain the basic assumption of economics with respect to rational self-interest. Describe two detailed real-life examples apply

ing the assumption.
Business
1 answer:
Roman55 [17]2 years ago
7 0

When making economic decisions, economists make assumptions in order to better understand how consumers' and businesses' behaviour.

To assist explain how an economy works and how to maximise growth, income, and employment, there are numerous economic theories.

However, preferences—that is, what companies and customers like to have or prefer to avoid—are central to many ideas. Additionally, the assumptions frequently concern the resources that are or are not readily available to meet the demands and preferences. The decisions that individuals involved in an economy make are significantly influenced by the availability or scarcity of resources.

Learn the rationale behind economists' assumptions and how they affect economic models.

When making economic decisions, economists make assumptions in order to better understand how consumers' and businesses' or  economic behaviour.

Economists They use assumptions in order to build a model that they can control because they are unable to isolate certain factors in the real world.

Learn more about economic behaviour hear :

brainly.com/question/15073240

#SPJ9

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Answer:

A

Explanation:

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Elastic demand or supply curves indicate that the quantity demanded or supplied responds to price changes in a greater than proportional manner.

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3 years ago
1. Describe the value of an education.
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