Economic analysis is the systematic approach to examining economic data and trends to understand how resources are allocated and how decisions are made. It involves evaluating various factors such as supply and demand, market structures, and consumer behavior to predict outcomes and inform policy decisions. This analysis can be applied to different areas, including microeconomics, which focuses on individual markets and consumers, and macroeconomics, which looks at the economy as a whole. By using tools like statistical methods and economic models, analysts can provide insights that help businesses and governments make informed choices.