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About this lesson
 grade level: 6-8, 9-12
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curriculum standards:
7
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author: Council for Economic Education Technology Staff
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posted on: September 22, 1997
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EconomicsMinute

Babysitter Shortage in Washington, D.C.

Key Economic Concepts:

Description:

What is responsible for the shortage of babysitters in Washington, DC? Identify the parts of the article which indicate a decrease in supply and an increase in demand.

Introduction:

Read the following article from The Washington Post about babysitter shortages

http://middle.usm.k12.wi.us/Faculty/markwald/CallingAllBabysittersart.htm [1]

Process:

What is responsible for the shortage of babysitters in Washington, DC? Identify the parts of the article which indicate a decrease in supply and an increase in demand.

What happens to the market price of babysitters when supply decreases? What happens to quantity of babysitters demanded? What happens to the market price of babysitters when demand increases? What happens to quantity of babysitters supplied?

What happens when both supply decreases and demand increases (with an inadequate increase in price?)

How can the shortage of babysitters be alleviated? List some ways to reduce the demand for babysitting. List ways to increase the supply of babysitters. How can a price change work to reduce the shortage?

Read the following excerpt from the Washington Post article:

David Gordon, who lives in upper Northwest Washington, says that in moments of desperation he's called 15-year-olds who usually charge $6 an hour and offered more... "They'll say, 'I don't know, I have a lot of homework,'" said Gordon, who then will offer $8 an hour. "Finally they'll say, 'Oh all right,' as if they're doing you a favor."

Look at the supply schedule below for Linda, who provides a babysitting service.

 

  • Price

$10

$7

$5

$2
  • Quantity of babysitting hours supplied

25

20

10

5

 

 *Adapted from "Lesson 9: Producers and Supply," Master Curriculum Guide 5-6. Copyright 1995, Council for Economic Education [2] , 1140 Avenue of the Americas, New York, NY 10036

 

Links Used:

1. ^ "http://middle.usm.k12.wi.us/Faculty/markwald/CallingAllBabysittersart.htm" - (middle.usm.k12.wi.us)
2. ^ "Council for Economic Education" - (www.councilforeconed.org)

Teacher Reviews

January 27, 2005
The students responded to this lesson very well, mostly because almost all of them could relate to the content matter. What a great way to actually make the students understand what they have been trying to learn for a week now!
- Jessicka Manley  

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