hen the price of a product falls, the purchasing pEconomics may best be defined as the interaction between macro and micro considerations. social science concerned with how individuals, institutions, and society make optimal choices under conditions of scarcity. empirical testing of value judgments through the use of logic. study of why people are rational.wer of our money income rises and thus permits consumers to purchase more of the product. This statement describes an inferior good. the rationing function of prices. the substitution effect. the income effect.\