Textbook used for this course: The Economics of Sports, 6th edition, by Michael Leeds, Peter von Allmen, and Victor Matheson (Routledge Publishing)

2. Using a separate graph for each case of the equilibrium for a two-team league, show what happens to the price of talent and the amounts of talent hired by the two teams if:

a. Changing fan demand in both cities increases Marginal Revenue by 20% in both locations.

b. Economic hard times befall the fans in the larger-revenue market location and incomes fall there.

c. Foreign demand for American sports on TV increases, and those fans always root for the underdog.