The price ceiling that the federal government placed on human organs caused

Question

Quizplus · Accepted Answer

A price ceiling is a maximum price that can be charged for a good or service, set by the government. When the price ceiling is below the market equilibrium price, it creates a shortage because the quantity demanded exceeds the quantity supplied at that price. In the case of human organs, a price ceiling would cause a shortage because the supply of organs (donors) would decrease due to the lower financial incentive to donate, while the demand for organs (patients in need of transplants) would increase at the lower price. Therefore, the correct answer is C, a shortage.

The Price Ceiling That the Federal Government Placed on Human