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.

Question

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.

Quizplus · Accepted Answer

The Answer of 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.

Suppose the Market for Kidneys Is Depicted in the Graph