The NBA is deciding to have a lockout after NBA commissioner David Stern reported that the league has lost 370 million last season, Players salary could drop to under $50.4 million. Yet there is still no official response to if there really is or is not going to be one or not. The decision that the NBA will have to make is either raise ticket prices to games by 15%-20% or lower salaries of the players more that could send players like Derrick Rose, Dwayne Wade, Lebron James , Carmelo Anthony and etc to play somewhere they could get paid better.
The NBA has a big decision to make with either lowering salaries or raising ticket prices. The concept that fits in with this isopportunity cost because if you raise prices on tickets less people come to the game yet if you lower salaries the players won’t have the motivation to play in the league.This is also showing Economic Freedom because the people have their own decision the players have their own decision and the league does as well.
The concept of Economic Growth and a Market Economy are also seen in this article. The league has the right to shut down the NBA for the year. The market economy part of this article will be seen by the lower you lower a player’s contract the less they want to play. This also shows Economic Growth where the consumer buys the ticket but the more tickets sold the more money the NBA makes but fewer tickets sold less money the league makes.
The NBA is deciding to have a lockout after NBA commissioner David Stern reported that the league has lost 370 million last season, Players salary could drop to under $50.4 million. Yet there is still no official response to if there really is or is not going to be one or not. The decision that the NBA will have to make is either raise ticket prices to games by 15%-20% or lower salaries of the players more that could send players like Derrick Rose, Dwayne Wade, Lebron James , Carmelo Anthony and etc to play somewhere they could get paid better.
The NBA has a big decision to make with either lowering salaries or raising ticket prices. The concept that fits in with this is opportunity cost because if you raise prices on tickets less people come to the game yet if you lower salaries the players won’t have the motivation to play in the league.This is also showing Economic Freedom because the people have their own decision the players have their own decision and the league does as well.
The concept of Economic Growth and a Market Economy are also seen in this article. The league has the right to shut down the NBA for the year. The market economy part of this article will be seen by the lower you lower a player’s contract the less they want to play. This also shows Economic Growth where the consumer buys the ticket but the more tickets sold the more money the NBA makes but fewer tickets sold less money the league makes.