Consider the Market for Heart Transplants

question 47

Multiple Choice

Consider the market for heart transplants. The demand for a heart transplant is perfectly inelastic and the supply curve is upward- sloping. If a $1,000 tax per transplant is imposed on buyers (the recipients) , how will the tax be divided between the buyer and seller?

• A) The tax will be evenly divided between the sellers and buyers.
• B) The sellers will pay the entire tax.
• C) The buyers will pay the entire tax.
• D) More information is needed to determine how the tax will be split.

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Definitions:

Left Atrium

One of the four chambers of the heart, receiving oxygen-rich blood from the lungs and pumping it into the left ventricle.

Pulmonary Artery

The blood vessel that carries deoxygenated blood from the right ventricle of the heart to the lungs for oxygenation.

Postcava

Another term for the inferior vena cava, the large vein that carries deoxygenated blood from the lower body to the heart.

Radial Vein

A vein located in the forearm that is part of the venous system returning blood to the heart.