Economic Theory is a framework that helps us understand how economies function and how various factors influence economic behavior. It encompasses a wide range of concepts, including supply and demand, market structures, and consumer behavior, which are essential for analyzing economic systems and making informed decisions. At its core, Economic Theory seeks to explain how individuals and institutions allocate resources, respond to incentives, and interact within markets. By studying these dynamics, economists can develop models that predict outcomes and guide policy-making, ultimately aiming to improve economic welfare and efficiency.