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Line 24: − <discuss supply and demand for NBA draft, using Michael Jordan example>+ + + + +
→Review Example: the NBA Draft: improved
Every year the National Basketball Association (NBA) holds a "draft" for each team to pick a college or high school player who wants to play in the NBA. The worst NBA teams are allowed to pick first (that is, pick the best incoming players) in order to even out the quality of the NBA teams. That way the best new players go to the worst NBA teams, and hopefully improve them so that there is better competition in the NBA and the same teams (like Los Angeles) do not win the championship every year.
Every year the National Basketball Association (NBA) holds a "draft" for each team to pick a college or high school player who wants to play in the NBA. The worst NBA teams are allowed to pick first (that is, pick the best incoming players) in order to even out the quality of the NBA teams. That way the best new players go to the worst NBA teams, and hopefully improve them so that there is better competition in the NBA and the same teams (like Los Angeles) do not win the championship every year.
A dilemma arises when a team is making its selection of a particular player: should the team pick (draft) the very best player available, regardless of the team's own needs for a player at a particular position, or should the team draft someone who fills a particular need on the team. For example, if the team has good guards but needs a good center, should it draft someone who plays the position of center even though the best player available for that selection is a guard?
That dilemma presented itself to the Portland Trailblazers at a time when it had good guards, but needed a center. The best player available at the time of its selection was Michael Jordan, a guard, but the team felt it needed to pick a center to fill a particular need of the team. It decided not to pick Michael Jordan and selected a center instead. The next team in the draft, the Chicago Bulls, then selected Michael Jordan and he eventually led it to six NBA championships. The center selected by the Portland Trailblazers struggled and eventually left the NBA.
What does economics teach us about the decision by the Portland Trailblazers? <explain more>
==Income and Substitution Effects==
==Income and Substitution Effects==