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Becker and Elias (2007) hypothesize that if kidneys were allowed to be legally sold, supply would be innite (8*) and transplant markets would clear at

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Becker and Elias (2007) hypothesize that if kidneys were allowed to be legally sold, supply would be innite (8*) and transplant markets would clear at a price of $175,200 and quantity \"Q1\" (at e*), as shown in the gure below. Assume further that the supply curves on the original graph equal the marginal cost curves and the inverse demand curve can be represented by: P(Q) = 500,000 - 5Q $175,200 Total cost of kidney transplants L\" .8 Q\" (2' Q\" Number of kidney transplants

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