Behavioral economics seeks to enrich our understanding of decision-making by integrating the insights of psychology into economics. It does this by investigating how given dollar amounts can mean different things to individuals depending on the situation. This can lead to decisions that appear outwardly inconsistent, or irrational, to the outside observer.

After watching the following short video on behavioral economics, answer this question: Think back to a purchase that you made recently. How would you describe your thinking before you made that purchase