Suppose the demand and supply for babysitting services in Dallas are represented by the following table.

1. Suppose the government wants to try to increase the quality of babysitters so requires all babysitters to have a license and makes each babysitter pay $7.50 per hour they work to a centralized service that handles their bookings and provides accreditation. Calculate the consumer and producer surplus and show them on your diagram.

2. Calculate the fee burden for consumers and for producers and show this on your diagram.

3.?Use a diagram to help explain the likely effects of this fee on the markets for nighttime childcare centers.

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Price Quantity demanded (hours per day) Quantity supplied (hours per day) ($/hour) 5.00 1500 7.50 1250 500 10.00 1000 1000 12.50 750 1500 15.00 500 2000 17.50 250 2500 20.00 3000 Price Quantity demanded (hours per day) Quantity supplied (hours per day) ($/hour) 5.00 1500 7.50 1250 500 10.00 1000 1000 12.50 750 1500 15.00 500 2000 17.50 250 2500 20.00 3000

Answer rating: 100% (QA)

Price 20 So 175 5 125 10 75 boducer Susfphs After fee 500 1000 1500 2000 2500 3000 3... View the full answer