Chapter 3, Problem 15P

To determine

Changes in the market for babysitting
(a) The market for an hour of babysitting services in middling this year.
(b) The market for an hour of babysitting services 14 years into the future
(c) The market for an hour of babysitting services 30 years into future.

Concept Introduction

Demand: The demand of a product or service in the market is derived by the willingness to purchase and ability of the consumers to pay for the purchase.

Supply: The supply of a product or service means making available a specific product or service to the consumers at a specific price.

Equilibrium Price: The equilibrium price is the market price at which the quantity demanded by the consumers equals the quantity supplied by the producers.

Equilibrium Quantity: The equilibrium quantity is that quantity where the demand and supply of a product or service is equal.