Two students are walking by a department store window that has on display a $400 dress. The English major declares, "I want that dress but can't afford it." The economics major replies, "No, you don't." Explain the logic of this reply
This is a version of the old economics joke that never elicits a student chuckle. The question addresses how economists fail to distinguish between "wants" and "needs." Anyone who wants something, in an economic sense, will engage in activities to acquire it. The student could take a second job and earn enough money for the dress in three weeks. By not making an effort to acquire the dress, the student reveals that she values other goods, and/or her time, more than she does the dress..
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