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

---

Definitions:

Asthenosphere

The semi-fluid layer of the Earth located below the lithosphere, allowing for plate tectonic movement.

Inner Core

The Earth's innermost layer, composed mainly of iron and nickel, solid due to extremely high pressure despite its high temperature.

Outer Atmosphere

The outermost layer of Earth's atmosphere, extending beyond the mesosphere, primarily composed of extremely low densities of hydrogen, helium, and other lighter gases.

Earth's Interior

The innermost layers of the Earth, including the crust, mantle, and core, each with distinct physical and chemical properties.