EBK PRINCIPLES OF MICROECONOMICS (SECON
2nd Edition
ISBN: 9780393616149
Author: Mateer
Publisher: W.W.NORTON+CO. (CC)
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Chapter 6, Problem 10SP
To determine
Explain the effect of market price and black-market price for organ sales.
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Should There be a Market for Kidneys? People are born with two kidneys, but they usually need only one. Most of us walk around with an extra organ that we don't really need, while some of our fellow citizens are dying to get one. Is this fair? Should there be a market for Kidneys? Who would benefit the most from the market for Kidneys?
What would happen if, in order to provide lower cost health care, the government decided to set a price ceiling (Pmax) in the health insurance market? (Please answer questions a, b, and c below.)
What is the effect of this maximum price legislation on the market for health insurance?
Briefly explain the situation for both consumers and producers (i.e. health care providers).
What might the government do to achieve their intended aims (i.e. lower costs and increased quantity)?
Listen to thisLinks to an external site. podcast about the market for human organs. https://www.npr.org/2008/05/21/90632108/should-we-legalize-the-market-for-human-organs Initial Response: Is there currently a surplus or shortage of human organs available for transplant? Using the demand/supply framework, explain how legalizing the trade for human organs will help move the market towards an equilibrium. Reply: Add to your original response by answering this question. What other product/market do you think should be legalized (or one that is currently legal and should not be) and why?
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EBK PRINCIPLES OF MICROECONOMICS (SECON
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