Non-clearing markets often have spillover effects into related markets. For example, when a concert promoter deliberately sets the ticket price below the market equilibrium price, this may result in greater sales of the performer's recordings.

Question

Quizplus · Accepted Answer

By setting ticket prices below market equilibrium, demand exceeds supply, leading to excess demand or a shortage of tickets. This can increase the performer's popularity and visibility, potentially boosting sales of their recordings as fans seek other ways to connect with the artist.

Non-Clearing Markets Often Have Spillover Effects into Related Markets