If the price for organ transplants are artificially regulated by the government
ID: 1224304 • Letter: I
Question
If the price for organ transplants are artificially regulated by the government at a below market clearing price and the market always seeks supply/demand and price equilibrium what will be the outcome?. The demand will be met only by supply at prices higher than the government regulated price. A person who has the resources to purchase a life saving organ (price of demand) and there will be market clearing supply at the equilibrium price which is above the regulated price-where will the supply come from? Is price regulation the answer to meeting the demand for organ transplants? Should there be a free market for organs transplants? Can the market help solve the organ transplant issue? ((Please answer in own words and breifly.))
Explanation / Answer
it will minimize the block market operations