Question

One reason that consumers and businesses might not act rationally is

a. it is difficult to obtain enough information about the elasticities of demand and supply.
b. they may not realize their actions are inconsistent with their goals.
c. they do not always value fairness when they make choices.
d. consumer tastes change constantly.

Answer 1

Answer: One reason that consumers and businesses might not act rationally is they may not realize their actions are inconsistent with their goals.

Rationality stand for choice or state where an individual is rational, i.e. being supported on or accordant to rational motive. It connote the conformance of an individual beliefs with his reasons to do so.

Therefore the correct option in this case is (b)