Supply And Demand Essay

689 WordsSep 21, 20083 Pages
Supply and demand Fotball player Question 1 To explain the economics for question 1 using supply and demand diagram, I’ve drown up to figures as seen below. Figure 1.1 is for highly skilled player and figure 1.2 is for a less skilled player. On both figures following is used: X- axis: Income club, popularity against supporters, points in league Y- axis: employment / playtime My assumption is that the club either pays and let them play or not pay and not let them play (Prof. John Hicks e-communities) All text below is seen in a short run perspective Highly skilled player Less skilled player Soccer player is a derived demand, at least in this supply and demand analyses question. They are a derived demand for the club. A player is a member of the team. They act (or should act) on behalf of the club and/or the rest of the team members. But also for the supporters. In teams like a soccer club there will always be some highly skilled and less skilled players. They are then in different scale to achieve income and points to the club. The “normal” situation before the scandal is stated for each player in their respective diagram with supply S1 and demand curve D1 (figure 1.1 is for highly skilled player and figure 1.2 is for the less skilled player). This gives us the equilibrium point P1 – Q1 that’s indicating the starting point where the players are employed and no scandals has occurred. P2 – Q2 indicates situation after suspension, no pay and no play. P1 is then the income the players give to the club, it could be monetary value, efforts to get points in the league and/or popularity against the supporters of the club/player. P1 for the highly skilled player (figure 1.1) is higher on x-axis and indicates with P1 that the highly skilled player it’s more involved to get higher income for the club and more points and

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