Economic behavior refers to the actions and decisions individuals and groups make regarding the allocation of resources, such as money, time, and goods. This behavior is influenced by various factors, including personal preferences, social norms, and market conditions. Understanding economic behavior helps economists predict how people will respond to changes in prices, income, and other economic variables. In addition to individual choices, economic behavior also encompasses the interactions between consumers and producers in markets. These interactions determine supply and demand, which ultimately influence prices and the availability of goods and services. Studying economic behavior is essential for policymakers to create effective strategies that promote economic growth and stability.