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Question: An editorial in the Economist magazine discusses the fact that in most countries-including the United States-it is illegal for individuals to buy or sell body parts, such as kidneys.
a. Draw a demand and supply graph for the market for kidneys. Show on your graph the legal maximum price of zero and indicate the quantity of kidneys supplied at this price.
b. The editorial argues that buying and selling kidneys should be legalized: With proper regulation, a kidney market would be a big improvement over the current sorry state of affairs. Sellers could be checked for disease and drug use, and cared for after operations. Buyers would get better kidneys, faster. Both sellers and buyers would do better than in the illegal market, where much of the money goes to middlemen. Do you agree with this argument? Should the government treat kidneys like other goods and allow the market to determine the price?
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