12. The market for college athletes Suppose that Poornima, an excellent high school basketball player, is being recruited by New York University (that is, NYU is the consumer in this example). NCAA rules prevent universities from compensating student athletes more than the full cost of tuition. Assume that recruiting for college athletes is organized under a perfectly competitive environment. The following graph shows the supply of and demand for Poornima's athletic services. Suppose that NYU's annual tuition is $36,000 (the amount of scholarship money, or the "wage," Poornima receives in exchange for playing at NYU). Shade the area representing NYU's consumers' surplus using the green point (triangle symbol). Then shade the area representing Poornima's total wage revenue using the purple point (diamond symbol). (? Poornima's Athletic Services Supply 80 Demand 4 CS Total Wage 8 Tuition WAGE (Thousands of dollars ATHLETIC SERVICES Again, the following graph shows the supply of and demand for Poornima's athletic services. Suppose that the NCAA revokes its rule, so universities can pay student athletes any wage with no limitations. Use the black point to indicate the wage New York University will pay Poornima under these conditions. Then shade NYU's consumers' surplus using the green point (triangle symbol). Finally, shade Poornima's total wage revenue using the purple point (diamond symbol). 91 Poornima's Athletic Services Supply 30 Demand 72 Equilibrium Wage A els CS WAGE (Thousands of dollars Total Wage O ATHLETIC SERVICES