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We usually think about rationality as being sensible or reasonable. For economists, rationality means when you make a choice, you will choose the thing you like best. Economic rationality accepts that people will act in a relatively predictable way.
Economists use this assumption to build economic models or theories. A famous theory is the law of supply and demand which states that if something costs more, rational people will probably want to buy less of it and sell more of it.
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