Application 2: The Kidney Market

Today, people want to buy computers, houses, and cars. Just the same, there are

people who want to buy kidneys. These people have kidney failure and will die

without a new kidney or endure years of costly and painful dialysis. Let's assume

the demand and supply for the kidney market is as follows:

6) Today, there is no free market for kidneys- it is illegal to buy or sell kidneys.

Thus, at the price of $0, this represents the number of people (1,500) willing to

donate their kidney(s) upon death or while living per month. Since it is illegal to

buy or sell kidneys, does this price of $0 create a surplus of kidneys, a shortage of

kidneys, or neither? Why and by how much?

7) If there was a free market for kidneys, what would be the price ($0, P2, or P1) and

what would be the quantity bought or sold (1,500, 2,000, or 2,500) per month?

Why?

8) Would allowing the free market prevail cause more or less people to die from

kidney failure per month? Why and by how much?

9) Should it be illegal to buy/sell kidneys? Why or why not?

MyDTCC X @ Formative Assessment : X Microsoft Word - Bielan X Homework Help - Q&A x C How It Works - Chegg T X C @ File | C:/Users/Mayerling/Downloads/ECO122_Assessment2%20(1).pdf M Paused Microsoft Word - Bielanskl_Applications of Supply and Demand.docx 2/4 Application 2: The Kidney Market Today, people want to buy computers, houses, and cars. Just the same, there are people who want to buy kidneys. These people have kidney failure and will die without a new kidney or endure years of costly and painful dialysis. Let's assume the demand and supply for the kidney market is as follows: Price of Kidney ($) Supply of Kidneys P1 P2 - Demand for Kidneys $0 1,500 2,000 2,500 Quantity of Kidneys per Month 6) Today, there is no free market for kidneys- it is illegal to buy or sell kidneys. Thus, at the price of $0, this represents the number of people (1,500) willing to + donate their kidney(s) upon death or while living per month. Since it is illegal to buy or sell kidneys, does this price of $0 create a surplus of kidneys, a shortage of kidneys, or neither? Why and by how much? 7) If there was a free market for kidneys, what would be the price ($0, P2, or P1) and Start a search O Ei e qb W 9 3:46 PM 2/15/2020