-Refer to Exhibit 4-5.If a free market were allowed in the transplanted kidney market,then the equilibrium price would be P₂.The number of kidneys transplanted would increase by _________ compared to the number transplanted at a price ceiling of P= $0.

Question

-Refer to Exhibit 4-5.If a free market were allowed in the transplanted kidney market,then the equilibrium price would be P<sub>2</sub>.The number of kidneys transplanted would increase by _________ compared to the number transplanted at a price ceiling of P= $0. A) (Q<sub>3</sub> - Q<sub>1</sub>) B) (Q<sub>3</sub> - Q<sub>2</sub>) C) (Q<sub>2</sub> - Q<sub>1</sub>) D) Q<sub>2</sub>

Quizplus · Accepted Answer

The increase in the number of kidneys transplanted would be the difference between the quantity supplied at the equilibrium price and the quantity supplied at a price ceiling of $0, which is represented by (Q₂ - Q₁).