2. Assume that sale of human organs is legalized and a free market develops. Furthermore, assume the market is in equilibrium. The graphs show the market of human kidneys. Use the graphs below to trace through the price and quantity effects of the following changes in market conditions. Be sure to illustrate any change in demand or supply, and label the new equilibrium price and output level. Explain why you think either the demand or supply curve would shift in any of the cases below. Hint: Complementary and substitute goods. A. A decrease in the price of kidney dialysis. B. The adoption of a cost-saving technology in kidney transplant surgeries. P S

2. Assume that sale of human organs is legalized and a free market develops. Furthermore, assume the market is in equilibrium. The graphs show the market of human kidneys. Use the graphs below to trace through the price and quantity effects of the following changes in market conditions. Be sure to illustrate any change in demand or supply, and label the new equilibrium price and output level. Explain why you think either the demand or supply curve would shift in any of the cases below. Hint: Complementary and substitute goods. A. A decrease in the price of kidney dialysis. B. The adoption of a cost-saving technology in kidney transplant surgeries. P S

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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