Chapter 3, Problem 15P

To determine

A diagram to illustrate the effect of these events on the following

1. The market for an hour of babysitting service in middling this year.
2. The market for an hour of babysitting services 14 years in to the future, after the birth rate has returned to normal, by which time children born today are old enough to work as babysitters.
3. The market for an hour of babysitting services 30 years into the future, when children born today are likely to be having children of their own.

Concept Introduction:

Supply: The supply is the ability of the seller to produce the goods and services and sell it at the prevailing price

Equilibrium price: The equilibrium price is at which the demand and supply are equal

Demand: The demand is defined as the ability to pay for goods and services.