Thursday, August 04, 2011
Are Squirrels Rational?
I spent a lot of time this summer in our backyard making a bird sanctuary for bird watching. I would buy exotic bird feed only to have the squirrels perform acrobatics to eat it before the birds could arrive. So I decided to lower the cost of eating for the squirrels. I bought shelled peanuts, whole kernel corn, and sunflower seeds. The little rodents ate that instead of my bird seed.
I believe that the squirrels face a downward sloping demand curve. They will increase the amount of food that they will eat if I lower the price everything else being equal.