The economic analysis expects the consumer to behave in a rational manner.
In an ideal world, people would always make optimal
decisions that provide them with the greatest benefit and satisfaction. In
economics, rational choice theory states that when humans are presented with
various options under the conditions of scarcity, they would choose the option
that maximizes their individual satisfaction.
This theory assumes that people,
given their preferences and constraints, are capable of making rational
decisions by effectively weighing the costs and benefits of each option
available to them. The final decision made will be the best choice for the individual.
The rational person has self-control and is unmoved by emotions and external
factors and, hence, knows what is best for himself.