Question $4$

Suppose that in a free market, $20,000$ patients receive a kidney transplant. Although the organ is donated to the

patients, the price of a transplant is still a hefty $$350,000$ to cover hospital and doctors' fees. And advocate of

medical care reform argues that the government should put a maximum price of $$100,000$ on kidney transplants to

make the surgery more affordable. Suppose patients will die without a kidney transplant. What is likely to happen if

a ceiling of $$100,000$ is imposed, ceteris paribus? Compared to the free market outcome with no government

intervention.

More kidneys will now be donated.

More doctors will be willing to perform the surgery.

The price ceiling benefits all patients in need of the surgery.

More patients will now die from kidney problems.