What is a good response to the information below?

....Opinion..

I agree with the criticism that the models used in economics are unrealistic.They are generally simplified even though they are designed to illustrate complex processes.Economic models are based off of assumptions that are not entirely accurate.When analyzing a market the following is assumed;

1. Optimal decisions are made at the margin
2. People are rational
3. People respond to economic incentives

Models are needed to establish argumentative framework for applying mathematics and logic that can be independently evaluated and tested.It also can be applied in various instances.Arguments and policies that rely on economic models have more validity and soundness.They are also used to predict economic activities, planning and allocating resources and assist with trading and investing speculations.

In an ideal economic model is a hypothesis is created regarding an economic variable that maybe correct for incorrect.These hypothesis are normally created from casual relationships.Once relevant data is collected, economists use statistical methods to evaluate the hypothesis.When this statistical analysis confirms the hypothesis of the economic model it is then accepted and used by economists until there is new information to negate it.

An example of a model that strikes the right balance details and simplification of use is the classical economic model.In this model the law of supply and demand is outlined by the following;The law of demand states, with all other factors unchanged, the amount of a product or service that is demanded will increase when the price has decreased. The law of supply states, with all other factors unchanged, an increase in price will result in an increase in the amount of the product or service that is supplied to the market.This model is extremely useful and widely used.