Explaination for rise in salaries

Reference no: EM1374498

In recent years, scores in baseball have constantly increased. Most experts believe that this is due to expansion of new teams into the league. It is their belief, that the increase in the number of teams has left teams unable to fill their roster with high-quality pitchers. Thus they fill out their roster with low-quality pitchers, which leads to higher scores. At the same time, thei salaries of players have raised enormously, in particular the salaries of high-quality pitchers.

Question: Can you use economics, in the context of this story, to explain the increase in salaries?

Is this correct: The higher salary is due to supply and demand. Teams want high-quality players but there is a shortage of them so the teams must pay more salary to attract the high-quality players.

Reference no: EM1374498

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