After learning about behavioral economics, it is clear that:

A) we should dispense with the traditional economic theory.
B) traditional theory does not explain all consumer decisions, but it sheds light on many of them.
C) traditional theory would stay but take a second place behind behavioral economics.
D) including behavioral economics in an economic model would add unnecessary complexity.

Question

Araceli Espinoza · Accepted Answer

Final Answer : B, Explanation :  Behavioral economics provides insights into consumer behavior that traditional economic theory cannot fully explain. However, this does not mean that traditional theory should be dispensed with entirely. Rather, behavioral economics should be incorporated alongside traditional theory to provide a more complete understanding of consumer decision-making.

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