Farmer Rick grows barley in Montana. One spring, he hires an economist to advise him on how to increase his profits. The economist goes away for a while...He estimates the demand for barley and returns to tell Rick that market demand has a linear relationship to the price in the market, and that the relationship is Q=2000-0.1p (Q is a bushel of barley). Farmer Rick decides that economists are useless. Why?
Because what Rick needs is clear information about demand elasticity and how it will affect his profits. He is not interested in equation if demand curve. He needs explanation in simple language and can't understand what economist says
Farmer Rick grows barley in Montana. One spring, he hires an economist to advise him on...