Question

Discuss the current government intervention in the Kidney Market in the U.S.Describe this market - comparing the free market and to the government intervention in one graph - using supply and demand; reference and discuss your graph in your paper. Explain the current government intervention and exactly how it corrects the problems of the free market. Include any other beneficial aspects of the intervention that you find through your own research - make sure you use econ terminology throughout.

Answer 1

Demand for kidney is very high when contrasted with its supply due to shortage. Furthermore, in this manner without government intercession, cost of kidney for the beneficiary will likewise be exceptionally high.

Negligible expense is the expense of giving one kidney. We realize that, since kidney is an exceptionally urgent aspect of our body, giving kidney cost an extremely high incentive to our body. Hence, somebody who needs to get kidney must atleast have the option to give giver value which is equivalent to this expense.

Minimal advantage - the advantage beneficiary addition by taking 1 kidney from giver. What's more, collector will be willing address the cost equivalent to Marginal advantage.

Consequently, Transaction of kidney will take just where the Marginal Benefit to beneficiary is equivalent to Marginal expense to contributor.

Due to this it can be said that supply of kidney is inelastic, thus increase in demand will pressure the price to raise for each idney more than the increase in quantity.

it can be corrected in many ways but in my point of view making this market under partial intereference of governement will bring the increase in supply to as many will sale at the prices offer thus this will shift the supply curve to right and thus keeping same price as mention above in diagram quantity offered will be increased thus more lives than earlier can be saved.

It is harsh reality in all this these are the poor who cannot afford will suffer in such case compaign must be run through government as incentives to the donor which can eventually help the poors to attract the donors and also by another suggestion is to survive on one kidney and help each other with the other kidney and maintain a healthy life can help the poor to survive their lives and also to earn and to pay less as helping hands can bring the cost down as supply will be increased.