Suppose that in the year 2015 the number of births is temporarily high. How does this baby boom affect the price of babysitting services in 2020 and 2030? (Hint: 5-year-olds need babysitters, whereas 15-year-olds can be babysitters.)
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The prices of goods and services depend upon the demand and supply conditions in the market. If the demand increases while supply remains the same, the prices will rise, but if the supply increases and the demand remains the same, the prices will fall.