Economics is very much about supply and demand. In a market economy, prices are established as "clearing prices" where supply schedules meet demand schedules.

a.Please explain the neo-classical economic assumptions behind such prices.

b.What are some important limitations to the neo-classical theory discussed in the article "lost and found" by Inoua and Smith 2019 , https://digitalcommons.chapman.edu/esi_working_papers/273/

on the classical economic assumptions, and how could one instead think about such prices, if real humans where making the decisions/choices.

This is the questions from course, international economic theory. I would really appreciate if you can give me assistance.