Economic models are simplified representations of economic processes that help economists understand and predict how different factors interact within an economy. These models use mathematical equations and graphs to illustrate relationships between variables, such as supply, demand, and price. By focusing on key elements, they allow for easier analysis of complex economic situations. There are various types of economic models, including microeconomic models, which examine individual markets, and macroeconomic models, which look at the economy as a whole. These models are essential tools for policymakers and researchers to evaluate the potential impacts of decisions and changes in economic conditions.