Suppose the Market for Kidneys Is Depicted in the Graph

question 138

Multiple Choice

Suppose the market for kidneys is depicted in the graph shown. Initially, kidneys exchanges are regulated to allow donations only. This means kidneys can only be exchanged at a price of zero. What is the deadweight loss from this restriction?

• A) $0
• B) $825,000
• C) $1,350,000
• D) $1,500,000

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Definitions:

Bad Faith

A concept in existentialist philosophy referring to self-deception or lying to oneself, often to avoid facing uncomfortable truths.

Jean-Paul Sartre

A French philosopher, playwright, novelist, and political activist from the 20th century, recognized for his work in existentialism and phenomenology.

Relationships

The way in which two or more people or things are connected, or the state of being connected.

Conflict

A struggle or clash between opposing forces, ideas, or interests, either internally within a person or externally between individuals, groups, or nations.