Suppose the Market for Kidneys Is Depicted in the Graph

question 99

Multiple Choice

Suppose the market for kidneys is depicted in the graph shown. 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.
• C)producer surplus will remain the same.
• D)a shortage of kidneys will arise.

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Definitions:

Domestic Partnership

A legally recognized relationship between two individuals who live together and share a domestic life but are not married.

Civil Union

A legally recognized union of a couple, similar to marriage, that can offer similar protections and rights without the religious or social connotations of marriage.

Civil Marriage

A marriage recognized legally by the state or government, not requiring a religious ceremony but adhering to legal statutes.

Homogamy

A marital union where partners are similar to each other when it comes to age, personality, and cultural interests.