Initially, kidneys are exchanged by donations only (price = $0). If the government decides to legalize kidneys sales and the market reaches equilibrium, then: A total surplus will increase. B consumer surplus will remain the same. producer surplus will remain the same. a shortage of kidneys will arise.

Principles of Economics (MindTap Course List)
8th Edition
ISBN:9781305585126
Author:N. Gregory Mankiw
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Chapter7: Consumers, Producers, And The Efficiency Of Markets
Section: Chapter Questions
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Suppose the market for kidneys is depicted in the graph shown.
1500
1200
Price per kidney
900
2000
Supply of kidneys
Demand for kidneys
Initially, kidneys are exchanged by donations only (price = $0). If the government decides to legalize kidneys sales and the market
reaches equilibrium, then:
A total surplus will increase.
B consumer surplus will remain the same.
producer surplus will remain the same.
D) a shortage of kidneys will arise.
Quantity of kidneys
Transcribed Image Text:Suppose the market for kidneys is depicted in the graph shown. 1500 1200 Price per kidney 900 2000 Supply of kidneys Demand for kidneys Initially, kidneys are exchanged by donations only (price = $0). If the government decides to legalize kidneys sales and the market reaches equilibrium, then: A total surplus will increase. B consumer surplus will remain the same. producer surplus will remain the same. D) a shortage of kidneys will arise. Quantity of kidneys
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