Show how each of the following three actions reduces total surplus: a. Having Josey consume one fewer

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Show how each of the following three actions reduces total surplus:

a. Having Josey consume one fewer pepper, and Casey one more pepper, than in the market equilibrium

b. Having Cara produce one fewer pepper, and Jamie one more pepper, than in the market equilibrium

c. Having Josey consume one fewer pepper, and Cara produce one fewer pepper, than in the market equilibrium 3, Suppose UNOS decides to further alter its guidelines for the allocation of donated kidneys, no longer relying solely on the concept of net survival benefit but also giving preference to patients with small children. If “total surplus” in this case is defined to be the total life span of kidney recipients, is this new guideline likely to reduce, increase, or leave total surplus unchanged? How might you justify this new guideline?

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Economics

ISBN: 9781319181949

5th Edition

Authors: Paul Krugman, Robin Wells

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