Suppose the Market for Kidneys Is Depicted in the Graph

question 54

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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