Economics, Supply And Demand Essay In the article we find that teenagers have theoppertunity to be demanding about their salary in the baby sitting field,because the amount of babysitters today are scarce. The babysitting population,teenagers, find themselves busy with school, part time jobs, and extracirricularactivity.
Teenagers with drivers licenses are even more scarce than those without, all in all, It’s hard to find a babysitter. Times have changed, just twentyyears ago there were 33 million children who needed to be watched, and 39million babysitters(age 10 – 19), recent polls suggest that children that needto be watched raised 18 percent to 39 million while baby sitters dropped 5percent to 37 million. The rise in children coupled with American familiesspending more time out then years ago, has allowed the babysitters to set theirprice with out haggeling. Baby sitters are making well over the federal minimumwage of $5.Order now
15 an hour because they are in demand, and scarce; the babysitterswho train in CPR, serve dinner, and drive are the hardest to come by and candemand the highest wages. In this article we see many examples of supply anddamand and the powers of supply and demand. Babysitters are in demand, there isan increase in the amount of children who need to be watched yet there arerelativly few who choose to babysit from the allready decreased amount of thebabysitter work force. This gives the babysitter the advantage of anoncompetitive work force, allowing the baby sitter to set the price with outbargaining.
If we were to compare two different production possibilityfrontiers, we would see a left shift of the curve while demand for baby sittersrises, from 1980 to 1996. In economics we concider this an inflation, the amountof resources(babysitters) decreased while the demand for them rose. This is whatwe would concider the begining of an econic problem because the resources arescarce. This resulted in an increase of price for that service. We also see thatthe most experienced, oldest, responcible, and best trained babysitters set thehighest prices by up to 60% from a ;novice; sallery of $4 to a;expert; sallery of $10 and consumers are willing to pay.
A consumeris willing to pay that extra $6 an hour for the piece of mind they get when theygo out and know that their children are being attending to in the best possibleway, much like a consumer is willing to by name brand products for a higherprice because they just ;feel; like its better. In the next two orthree years the work force of the babysitters will grow, and so will the numberof people under the age of 10, this will show a steady PPC with no signs ofrelief for the consumer. This article shows the power of supply and demand. 20years ago when children under the age of 10 and baby sitters age 10-19 were bothfewer, we saw more competition between the baby sitters resulting in pricedecreases. Today with fewer baby sitters, all with busy scheduals, and moreyoung children we see the damand increase resulting in an increase of price.Economics .