Marginal Revolution: A Lesson in Economics on Father's Day

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A Lesson in Economics on Father's Day

"How did your bake sale go?" I asked my 8-year old son.
"Great."
"How much did you sell the chocolates for?"
"I'm not sure."
"You're not sure? Why not?"
"Well, I kept raising the price"
"Really? How come?"
"Dad," he replied with exasperation, "supply and demand."

Posted by Alex Tabarrok on June 17, 2007 at 07:05 AM in Economics | Permalink

Comments

A conversation with my then 5 year old nephew playing with his toy cars...

"What are the cars doing Liam?"
"They're lining up at the gas station."
"Oh, is the gas expensive?"
"SIGH, they're lining up because the gas is CHEAP!"

Isaac

Posted by: Isaac Crawford at Jun 17, 2007 7:44:29 AM

Fast forward to 2055... Liam on the podium to receive his Nobel... jointly with Alex's son!

Posted by: Bill Stepp at Jun 17, 2007 9:04:52 AM

I think the world pretty much divides into those who, even as kids, are economic realists and those who never quite get over the discomfort of pricing their goods or sevices.

Posted by: ricpic at Jun 17, 2007 11:09:30 AM

My 6-year-old daughter, after being sent to the corner:

But, Dad, victim less crimes are not punishable!

Posted by: jurisnaturalist at Jun 17, 2007 2:21:13 PM

I bet you didn't let that get in the way of your belief that your parental authority is absolute, jurisnaturalist...

Posted by: Francois Tremblay at Jun 17, 2007 4:21:57 PM

Oh I remember the days of hocking sodas in the back of the school bus in arizona. rich kids with 30-45 minutes in a bus after a day of school.

I think the highest I sold one for was $6, lowest was $1 (though gave them to friends from time to time) -- average $2. One of my better businesses.

Posted by: Christopher at Jun 18, 2007 10:16:29 AM

How I Knew I'd Been In Consulting Too Long ...

Me: Meg, please don't scribble on the walls.

Meg (aged three): Don't micromanage me!