explain in detail 3. Assume that sale of human organs is legalized and a free market develops.

explain in detail 

Transcribed Image Text:

3. Assume that sale of human organs is legalized and a free market develops. Furthermore, assume the market is in equilibrium. The graphs show the market of human kidneys. Use the graphs below to trace through the price and quantity effects of the following changes in market conditions. Be sure to illustrate any change in demand or supply, and label the new equilibrium price and output level. Explain why you think either the demand or supply curve would shift in any of the cases below. Hint: Complementary and substitute goods. A. A decrease in the price of kidney dialysis. P S X D B. The adoption of a cost-saving technology in kidney transplant surgeries. P LO X >Q S x C. Explain what adjustment may occur in the long run because of the technological change specified in part B. P D >Q -Q Display Settings Focus 3. Assume that sale of human organs is legalized and a free market develops. Furthermore, assume the market is in equilibrium. The graphs show the market of human kidneys. Use the graphs below to trace through the price and quantity effects of the following changes in market conditions. Be sure to illustrate any change in demand or supply, and label the new equilibrium price and output level. Explain why you think either the demand or supply curve would shift in any of the cases below. Hint: Complementary and substitute goods. A. A decrease in the price of kidney dialysis. P S X D B. The adoption of a cost-saving technology in kidney transplant surgeries. P LO X >Q S x C. Explain what adjustment may occur in the long run because of the technological change specified in part B. P D >Q -Q Display Settings Focus

Answer rating: 100% (QA)

A market is said to be in equilibrium when the demand and supply are equal Here the given market is ... View the full answer