Preference (economics)

Preferences in economics means the choices people make when they decide what to buy, how much to buy, and how to spend their money. People have different preferences for different things, so it's important for economists to look at those preferences, since it can help them to better understand the choices people make, and why they make them. For example, some people may prefer to buy a new car, while others may prefer to buy a used car; both are very different choices that are based on different preferences. Economists can take these preferences into account when they study the economy and how people spend money.