Pharmacodynamics is the study of how drugs act on the body and their mechanisms of action. It includes the biochemical and physiological effects of drugs. A key concept is that drugs can act as agonists, partial agonists, antagonists, or inverse agonists depending on if they mimic endogenous compounds and what receptor states they stabilize. The potency and efficacy of a drug depends on its affinity for and ability to activate receptors. Factors like tolerance, resensitization, and downregulation also impact a drug's effects over time. Understanding pharmacodynamics is important for determining dosages, maximizing therapeutic effects, and minimizing adverse reactions.