Assume the Supply of Kidneys is expressed as: Qs = 800 +.2P Assume the Demand for Kidneys is expressed as: Qd = 16,000 - .2P Due to the 1984 act prohibiting the purchase and sale of organs for transplant, supply will be limited to the number of kidneys individuals will donate (the number of kidneys donated when the price = 0) Graphically, show the supply and demand for kidneys before prohibition. Solve algebraically for the equilibrium price and quantity. How many kidneys will be available for transparent given the prohibition of selling a kidney in the market? Draw in what the new supply curve will look like. Will a shortage or surplus of kidneys result? What happens to the opportunity cost of acquiring a kidney?

Assume the Supply of Kidneys is expressed as: Qs = 800 +.2P Assume the Demand for Kidneys is expressed as: Qd = 16,000 - .2P Due to the 1984 act prohibiting the purchase and sale of organs for transplant, supply will be limited to the number of kidneys individuals will donate (the number of kidneys donated when the price = 0) Graphically, show the supply and demand for kidneys before prohibition. Solve algebraically for the equilibrium price and quantity. How many kidneys will be available for transparent given the prohibition of selling a kidney in the market? Draw in what the new supply curve will look like. Will a shortage or surplus of kidneys result? What happens to the opportunity cost of acquiring a kidney?

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section6.A: Indifference Curve Analysis

Problem 2SQP

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