Recycling center

Question

Suppose you go to a recycling center and are paid 25 cents per pound for your aluminum cans.  However, the recycler charges you $.20 per bundle to accept your old newspapers.

Answer 1

The equilibrium price of aluminum cans is not only higher than that for newspapers, but the price of newspapers is actually negative, meaning that the demand is very low relative to the supply.  The demand at a negative price and consumers pay is so low that the equilibrium quantity is to have the papers “purchased.” Nevertheless, confusing idea will probably confuse students and is probably not worth mentioning unless a student raises the issue.