At present, the maximum legal price for a humanh kidney is $0.the price of $0 ma

Question

At present, the maximum legal price for a humanh kidney is $0.the price of $0 maximizes a. consumer surplus, buy not producer surplus. b. producer surplus, buy not consumer surplus. cl. both consumer and producer surplus d.neither consumer nor producer surplus. At present, the maximum legal price for a humanh kidney is $0.the price of $0 maximizes a. consumer surplus, buy not producer surplus. b. producer surplus, buy not consumer surplus. cl. both consumer and producer surplus d.neither consumer nor producer surplus.

Explanation / Answer

We can consider price as an incentive and if the price is 0then there is no incentive. Therefore, the producer will notbenefit from contributing kidneys, thus no producer surplus. On theother hand, if there is anyone want to donate it, and the consumerwants to pay, let's say a million dollars, there will be a consumersurplus of a million since the producer is donating it, thus: A is your answer

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