a Draw a Demand Supply diagram for the potential market for

a. Draw a Demand & Supply diagram for the (potential) market for human kidneys. (Note: draw the supply curve as upward sloping starting at a current hypothetical Quantity of Kidneys (e.g. 1000) at zero price; draw the demand curve as fairly inelastic, i.e. very steep). b. Because it is unlawful to buy or a sell a kidney at any price, draw in the price ceiling. Clearly label it on the diagram you drew for 3a. above. c. What are the likely outcome of this market (equilibrium, shortage of kidneys, surplus)? d. In a sentence or two, propose an economic solution to this problem. (Assume that there are no dramatic breakthroughs in genetic engineering in this area so human transplants remain the best solution at present, and preferable to keeping patients dependent on dialysis machines.) e. In a sentence or two, outline some of the ethical implications of your proposed solution.

Only the last one need to be answered.

Solution

d) As the kidneys are available at high price, so there is possibly low demand of kidneys in the market.This is also being attributed to limited supply of kidneys in the market. Human transplants is the only best solution at present, so the supply of kidneys based on kidney availability is low in the market.

An economic solution is that government should make it mandate for every individual to donate his kidney post life.As a result the availability of the kidneys thus improve.

e) The ethical implications is that post life individuals would get a chance to serve the society by donating his kidney and would have contentment. At the same time , the family members would not be in favour of the same as they have emotional bonding with the person who is no more with them and do not want his body to bear the pain of a surgery further.