In the market for organs for transplant-such as kidneys, lungs and hearts-the price is fixed at zero. Legal restrictions prevent any payment for donation of organs. Reliance on altruism-donation without payment-has not filled the demand for organs. The number of people on transplant waiting lists (and people dying while on those lists) is twice the number of willing donors. Draw a graph illustrating the effect of setting the price for organs= zero. What happens to consumer and producer surplus at price=zero vs. at a "free-market" price?

In the market for organs for transplant-such as kidneys, lungs and hearts-the price is fixed at zero. Legal restrictions prevent any payment for donation of organs. Reliance on altruism-donation without payment-has not filled the demand for organs. The number of people on transplant waiting lists (and people dying while on those lists) is twice the number of willing donors. Draw a graph illustrating the effect of setting the price for organs= zero. What happens to consumer and producer surplus at price=zero vs. at a "free-market" price?

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

ChapterST7: The Economics Of Health Care

Section: Chapter Questions

Problem 1CQ

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