A shortage of kidneys (for transplants)results from
A) the legal price being set below the equilibrium price.
B) the legal price being set above the equilibrium price.
C) a price floor being set in the kidney market at P = $0,assuming the equilibrium price is greater than $0.
D) a price ceiling being set in the kidney market at P = $0,assuming the equilibrium price is greater than $0.
E) a and d

Question

Quizplus · Accepted Answer

A shortage in the kidney market can occur if the legal price is set below the equilibrium price, which is effectively what happens when a price ceiling is imposed at $0, assuming the equilibrium price is greater than $0. This prevents the market from clearing, as the quantity demanded exceeds the quantity supplied at this artificially low price.

A Shortage of Kidneys (For Transplants)results from