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1. How does the ceiling on the pay to student-athletes impact competitive balance in college sports?

1. How does the ceiling on the pay to student-athletes impact competitive balance in college sports?

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Answer #1

Ceiling on pay to student athletes means the maximum limit on the pay. This implies decrease in pay below equilibrium pay where supply and demand of athletes are equal. Decrease in pay will lead to decrease in student supplied and increase in student demanded. This creates a shortage of athletes in college sports.

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