My son, the future economist.....

I'm not sure what new there is to say... we have an absolutely brilliant child on our hands.....

Here's how a recent conversation went:

C: “Mommy, the price of gas went up … Why?”
Me: “Well, C, it is something called supply and demand. If there is not enough of something that lots of people want, sometimes the price of it goes up.”
C: “Oh.”
(next day – price of gas went from $3.59/gallon to $3.49/gallon)
C: “MOMMY!”
Me: “Yes, C.”
C: “The price of gas went down!”
Me: “Yes, C, that is right.”
C: “So that means that there is too much gas and not enough people want it???”
Me: (Amazed at his astute propensity towards economics at only three years old) “Ummm…. Yes… pretty much that is right…” Then to test his concept transference…. “So what would happen if there was too much cotton candy and not enough people wanted to buy it?” (I was fully expecting a typical child’s answer like “I will eat it all” or “they should stop making so much of it….)
C: “Well, they would have to lower the price, then. So more people would buy it.”