In this case we're dealing with the baseball labor market, not the consumer leisure market. In the labor market it's the demand that's fixed: owners want 25 major leaguers on each team and really can't deviate from that, although you do have some flow to and from the minors and mexican leagues, etc. Now, if this were a true free labor market, the players would have no choice but to accept the lowest competitive price available. The fixed demand would work against the players, because their options are relatively limited. If they want to play in the bigs, they need to deal with these owners. The players' union adds another wrinkle. I'm not quite sure how all the complexities play out, but the point is that the fixed demand works against the players. The consumer leisure market is a different story altogether. It does affect the baseball labor market, but only indirectly. The amount of business will determine just how much the team owners value talented ballplayers and that value will affect how much they're willing to pay. However even in this situation, the supply still isn't capped because baseball competes with other sports, or even completely different forms of entertainment. Consumers may watch basketball, football or go see a movie instead of watching a baseball game.