Demand for healthy kidneys is high in both India in Nepal. But it is also illegal to buy or sell organs. Despite the legal and social disapproval, there is an illegal market for organs. Assuming the legal and social disapproval does not influence buyers but discourages sellers from offering organs, the disapproval will:
A) raise price and raise quantity.
B) raise price but lower quantity.
C) lower price but raise quantity.
D) lower price and lower quantity.

Question

Quizplus · Accepted Answer

The disapproval discourages sellers, reducing supply, which raises prices but lowers the quantity available in the market.

Demand for Healthy Kidneys Is High in Both India in Nepal