Microeconomics
10th Edition
ISBN: 9781259655500
Author: David C Colander
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 23, Problem 12QE
(a)
To determine
Determine the impact of the development of such organ farms on the price of pigs.
(b)
To determine
Determine whether the development of such organ farms would be Pareto optimal.
(c)
To determine
Determine the impact of development of farm organs on the existing black market in human organs.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Is there any graph that can show about the Malthusian Theory of the decreasing in supply food that will increase the population?
During natural disasters such as the flooding in Burma one policy choice is to do nothing, i.e. let prices rise and fall according to increases and decreases in supply and demand.
A second policy choice is to interfere in the market, regulate prices, and prevent the price of goods such as corrugated steel roofing, gasoline, nails, water, food, etc. from rising. The argument frequently made to justify regulating prices is that owners of scarce goods are taking advantage of people in need----taking advantage of innocent people's misfortunes to steal their money and enrich themselves. This is immoral behaviour and should not be allowed.
This second policy usually includes a reliance on government rather than the free market to bring in supplies of scarce goods and distribute them for free or at below market prices to alleviate shortages.
The 15,000 kidneys that are transplanted in the United States each year are received free from organ donors. Despite this,
because of hospital fees, the average price of a kidney transplant is $250,000. As a result, only rich people or people with
very good health insurance can afford the transplants. The government should put a ceiling of $100,000 on the price of
kidney transplants. That way the middle-income people will be able to afford them, the demand for kidney transplants will
increase and more kidney transplants will take place. Do you agree with the advocate's reasoning? Who gains (how much)
and who loses (how much) from the price ceiling? Carefully Explain in terms of demand-and-supply analysis (a graph
would help).
Chapter 23 Solutions
Microeconomics
Ch. 23.1 - Prob. 1QCh. 23.1 - Prob. 2QCh. 23.1 - Prob. 3QCh. 23.1 - Prob. 4QCh. 23.1 - Prob. 5QCh. 23.1 - Prob. 6QCh. 23.1 - Prob. 7QCh. 23.1 - Prob. 8QCh. 23.1 - Prob. 9QCh. 23.1 - Prob. 10Q
Ch. 23 - Prob. 1QECh. 23 - Prob. 2QECh. 23 - Prob. 3QECh. 23 - Prob. 4QECh. 23 - Prob. 5QECh. 23 - Prob. 6QECh. 23 - Prob. 7QECh. 23 - Prob. 8QECh. 23 - Prob. 9QECh. 23 - Prob. 10QECh. 23 - Prob. 11QECh. 23 - Prob. 12QECh. 23 - Prob. 13QECh. 23 - Prob. 14QECh. 23 - Prob. 15QECh. 23 - Prob. 1QAPCh. 23 - Prob. 2QAPCh. 23 - Prob. 3QAPCh. 23 - Prob. 4QAPCh. 23 - Prob. 5QAPCh. 23 - Prob. 1IPCh. 23 - Prob. 2IPCh. 23 - Prob. 3IPCh. 23 - Prob. 4IPCh. 23 - Prob. 5IPCh. 23 - Prob. 6IPCh. 23 - Prob. 7IPCh. 23 - Prob. 8IPCh. 23 - Prob. 9IPCh. 23 - Prob. 10IPCh. 23 - Prob. 11IP
Knowledge Booster
Similar questions
- Hello. Could someone explain to me how demand and supply works in economicsarrow_forwardSuppose you are asked to do a market analysis in an area in which a natural disaster has recently occurred. (An example might be Nashville after the spring floods or New Orleans after Hurricane Katrina.) Other than building supplies (which is too easy :), choose a market for a good or service that will be affected. Will demand or supply be affected? (Even if it might be both, just choose one or the other to keep it simpler). What happens to equilibrium prices and output in this market? Draw a supply and demand graph for your own use, and then explain the process in detail. Choose a market that has not already been chosen by a classmate. Be creative and thoughtful!arrow_forwardIn 1983, the Reagan Administration introduced a new agricultural program called the Payment-in-Kind Program. To see how the program worked, let's consider the wheat market. a.) Suppose the demand function is QD = 28 2P and the supply function is Qs = 4 +4P, where P is the price of wheat in dollars per bushel, and is the quantity in billions of bushels. Find the free-market equilibrium price and quantity, and depict this market graphically. b.) Now suppose the government wants to lower the supply of wheat by 25% from the free-market equilibrium by paying farmers to withdraw land from production. However, the payment is mad in wheat rather than in dollars-hence the name of the program. The wheat comes from vast government reserves accumulated from previous price support programs. The amount of wheat paid i equal to the amount that could have been harvested on the land withdrawn from production (but is instead given to the farmers for free). Farmers are free to sell this wheat on the…arrow_forward
- 3. Consumer surplus for a group of consumers The following graph shows the demand curve for a group of consumers in the U.S. market (blue line) for tablets. The market price of a tablet is shown by the black horizontal line at $150. Each rectangle you can place on the following graph corresponds to a particular buyer in this market: orange (square symbols) for Yakov, green (triangle symbols) for Ana, purple (diamond symbols) for Charles, tan (dash symbols) for Dina, and blue (circle symbols) for Gilberto. Use the rectangles to shade the areas representing consumer surplus for each person who is willing and able to purchase a tablet at a market price of $150. (Note: If a person will not purchase a tablet at the market price, indicate this by leaving his or her rectangle in its original position on the palette.) PRICE (Dollars per tablet) 400 350 300 250 200 150 100 50 0 0 1 Yakov 2 Ana Charles 4 Dina 3 5 QUANTITY (Tablets) Market Price Gilberto 6 7 8 Based on the information on the…arrow_forwardIf people can't afford the equilibrium price for a good, would it be a good idea for the government to force the producer to produce it and give it to the poor people? Why or why not?arrow_forwardAnswer asap correctly Consider a country that is deciding how many libraries to build. For the time being, suppose that the country has only three people, Alice, Bob, and Stewart. Let Alice’s demand for libraries be Q = 20 − P/5. Let Bob’s be Q = 10 − P/5, and let Stewart’s be Q = 15 − P/2. Let the marginal cost of an additional library be a constant PMC = $120 per library. (a) What is the efficient number of libraries to build and what are the Lindahl prices?arrow_forward
- explain in detail the difference between the concept of Pareto optimality and Pareto superiority. what would happen if a policy change moves an economy from a non-Pareto optimal situation to a Pareto optimal situation? will the changes from a non-Pareto optimal situation to a Pareto optimal situation necessarily lead to a Pareto optimal situation?arrow_forwardIGCSE ECONOMICS This proves that, as the price of a good rises, producer will want to supply more because (if they could sell all of the products they made) they would make more profit. Therefore the supply curve extends. As the price falls, quantity supplied contracts. This is because as the price falls, firms will expect to earn less profits. In the space below, draw a supply curve and show that as price rises, quantity supplied extends (like the example of p. 6 of the workbook) Shifts in supply curves As we have seen, a change in the price of a product will cause its supply curve to extend or contract. Changes in things other than the price will cause its whole supply curve to move (or shift). A movement of the whole supply curve for a good is called either an increase or decrease in supply. Examine the market supply schedule for disposable razors below. Possible price of razors (p) Original supply per month Increased supply per month 50 10 000 12 000 40 8.000 10 000 30 6 000 8 000…arrow_forwardWhy is economics often described as the science of constrained choice?arrow_forward
- Suppose two bars, “the Last Jar” and “Prince Alfred”, can choose to sell a pint of beer for either $10 or $12. For simplicity, assume that: these are the only two possible prices; there are no costs (e.g., there is no cost for obtaining and serving the beer), and each customer drinks exactly one pint of beer. There are two types of customers: professors and students. Professors are not price-sensitive and go to the bar closest to their department’s building. Thus, 50 professors from the Melbourne School of Engineering go to Prince Alfred, while 50 professors from the Melbourne Graduate School of Education go to the Last Jar. Meanwhile, the students, who are 200 in total, are price sensitive. They go to the bar with the lowest price –or, if both bars charge the same price, then they split evenly. Simultaneous game: Suppose that the two bars must choose what price to set simultaneously. a) Write the normal form of the game. b) What is the Nash Equilibrium (NE) of this game?arrow_forwardSuppose two bars, “the Last Jar” and “Prince Alfred”, can choose to sell a pint of beer for either $10 or $12. For simplicity, assume that: these are the only two possible prices; there are no costs (e.g., there is no cost for obtaining and serving the beer), and each customer drinks exactly one pint of beer. There are two types of customers: professors and students. Professors are not price-sensitive and go to the bar closest to their department’s building. Thus, 50 professors from the Melbourne School of Engineering go to Prince Alfred, while 50 professors from the Melbourne Graduate School of Education go to the Last Jar. Meanwhile, the students, who are 200 in total, are price sensitive. They go to the bar with the lowest price –or, if both bars charge the same price, then they split evenly. Sequential game: a) Suppose the Last Jar chooses what price to set first. Then, after observing the price set by the Last Jar, Price Alfred chooses what price to set. Draw the extensive form…arrow_forwardI need help with this question! How can I draw a model for it?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506756Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning