The wages of players have raised enormously

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Reference no: EM1338077

Explaination of the increase in salaries

In recent years, the scores in baseball have steadily increased. Most experts believe this is due to the 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: EM1338077

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