Question

If the demand curve for tickets to a taping of a television show intersects the supply curve for tickets to that show at a negative price, then in order to put that market in equilibrium the producers would need to pay people to view the show being taped.A. TrueB. False

Answer 1

Answer: A. True

Explanation: A demand curve is the graphical representation of quantity of goods demanded and price. The price is at the left vertical axis and the quantity is at the right horizontal axis.

When demand and supply intersect, there is price equilibrium that is the quantity demanded and the quantity supply are same. The market can move below or about this equilibrium.

As the television show intersect the supply curve at a negative price, an increase in views will put it back to an equilibrium price .