Explain in what sense can we speak of a market for professional basketball? Who are the
demanders and who are the suppliers? What are the market equilibrium price and quantity in
1980 and 2016, respectively? Relate to the discussion of demand and supply shifters in the
textbook, explain what are some examples of how changes in supply or demand conditions have
affected this market and how each of these factors influence the average pay and the number of
players per season?
Consider the examples of Kobe Bryant, Kevin Garnett, and LeBron James in the case,
how would you evaluate their decisions to join the basketball team instead of going to college?
How do their decisions to give up college reflect the basic economic principles?
1 Sources: “NBA Player Salaries: 2015-2016,” ESPN at http://espn.go.com/nba/salaries; and “Silver Sees
NBA, Expects Shorter Season,” New York Times, 23 October 2015, at
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