Question

More than 100,000 Americans. are waiting for life saving kidneys, livers, lungs, and other vital organs. The government does not permit organ sales to occur. In 1984, Congress forbade the same or purchase of human organs in the United States (the National Organ Transplatation act.
1. What should be done about organ shortage in the United States (ceiling price set at zero)?

Answer 1

We know that the price ceiling means that the upper price imposed on the price of a good. The prohibition of organ transplantation was set up by using the price ceiling. When price is set to be zero, then the organs are supplied by altruistic donor. It will leads to decrease the quantity supplied. Generally, the price celling can have three effects. That is,

1. Increase the quantity demanded
2. Decrease the quantity supplied
3. Shortages in the market

If the market has shortages of organs then many patients to be die. To avoid these consequences the rich patients will search on internet for organs. Generally the patients approach to brokers and search the organs outside of the country. But the problem here is that even they search outside of the country the cost will be higher than home country. Another solution for this problem is opt-out organ donation. It is simply means that the requiring donors specifically sign up to assume everyone is a donor.