The three diagrams below show the supply and demand for teenage babysitters in one local area. The initial supply curve is S 0 in all cases.
FIGURE 14-3
-Refer to Figure 14-3. Suppose the teenage babysitters in one local area are earning an equilibrium wage of $6 per hour. Now suppose the local government reduces the minimum age for working as a babysitter from 14 to 12 years of age. Which diagram illustrates the new supply curve SA) for babysitters?

Question

The three diagrams below show the supply and demand for teenage babysitters in one local area. The initial supply curve is S 0 in all cases.
  FIGURE 14-3
-Refer to Figure 14-3. Suppose the teenage babysitters in one local area are earning an equilibrium wage of $6 per hour. Now suppose the local government reduces the minimum age for working as a babysitter from 14 to 12 years of age. Which diagram illustrates the new supply curve SA) for babysitters?

Quizplus · Accepted Answer

The Answer of The three diagrams below show the supply and demand for teenage babysitters in one local area. The initial supply curve is S 0 in all cases.
  FIGURE 14-3
-Refer to Figure 14-3. Suppose the teenage babysitters in one local area are earning an equilibrium wage of $6 per hour. Now suppose the local government reduces the minimum age for working as a babysitter from 14 to 12 years of age. Which diagram illustrates the new supply curve SA) for babysitters?

The Three Diagrams Below Show the Supply and Demand for Teenage