8. Suppose the market for kidneys is estimated by the equation QD = 10,000 - 2P and Qs = 4,000 + P. a. Graph the demand and supply curves above. Label all parts and show the equilibrium price and quantity in this market. b. How much consumer surplus would be realized from this market if it were legal to sell kidneys? How much producer surplus is realized from this market? c. What is the deadweight loss from prohibiting the sale of kidneys?

8. Suppose the market for kidneys is estimated by the equation QD = 10,000 - 2P and Qs = 4,000 + P. a. Graph the demand and supply curves above. Label all parts and show the equilibrium price and quantity in this market. b. How much consumer surplus would be realized from this market if it were legal to sell kidneys? How much producer surplus is realized from this market? c. What is the deadweight loss from prohibiting the sale of kidneys?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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