Initially, kidneys are exchanged by donations only (price = $0). If the government decides to legalize kidneys sales and the market reaches equilibrium, then: A total surplus will increase. B consumer surplus will remain the same. producer surplus will remain the same. a shortage of kidneys will arise.
Initially, kidneys are exchanged by donations only (price = $0). If the government decides to legalize kidneys sales and the market reaches equilibrium, then: A total surplus will increase. B consumer surplus will remain the same. producer surplus will remain the same. a shortage of kidneys will arise.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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
Transcribed Image Text:Suppose the market for kidneys is depicted in the graph shown.
1500
1200
Price per kidney
900
2000
Supply of kidneys
Demand for kidneys
Initially, kidneys are exchanged by donations only (price = $0). If the government decides to legalize kidneys sales and the market
reaches equilibrium, then:
A total surplus will increase.
B consumer surplus will remain the same.
producer surplus will remain the same.
D) a shortage of kidneys will arise.
Quantity of kidneys
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