Sports Econ HW Assignment ch8 and 9

Sports Econ HW Assignment ch8 and 9 - Economics of Sports...

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Economics of Sports Homework 8.1 Market for Baseball Players The market demand for baseball players is perfectly inelastic meaning that the quantity demanded, 750 players, remains unchanged and unaffected by a change in supply. This graph shows that when supply for baseball players increases (shifts right on the graph) due to the availability of international players that a decrease in wage results. On the graph, the decrease in wage is shown by movement from point A to point B. Wage Quantity 750 S 1 W o W 1 A B D S o
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Soccer as a competitive market, wage would = W1 with Q1 workers or players. If Soccer in Europe had a reverse cause it would make the league a monopsany, so it would only hire workers where ME=D, which would be less then Q1 at Q2. This would also drop wage from W1 to W2 because the labor market would be the same size with fewer openings to fill 8.10 The player would stay for his senior year because for fitting the 40,000$ in interest could get the player 100,000 in extra salary. 0 Units of
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Sports Econ HW Assignment ch8 and 9 - Economics of Sports...

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