Question: In the market for organs for transplant such as kidneys
In the market for organs for transplant, such as kidneys and hearts, the price is constrained to equal zero. Opposition to any type of remuneration for donating organs has been all but absolute from physicians and legislators. Reliance on altruism, however, does not appear to be working. The number of people waiting for organ transplants (and dying if they do not receive them) is double the number of willing donors. Relying on graphs, explain the effect of the proscription of financial incentives for organ donations on the producer surplus and consumer surplus in this market.
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