Question

Describe how free market of human organs features could be introduced to help alleviate the social problem through free market operations of supply and demand.

Answer 1

Answer:

The market of human organs is restricted on ethical grounds owing to the fact that it may be misused if left to free market mechanism. However, the free market mechanism ensures allocative efficiency in the society.

Market of human organs Supply Price of human organs Demand Quantity of human organs

The demand curve shows the maximum willingness to pay for each quantity. This means demand curve shows how people value different quantities of human organs. The supply curve shows willingness to supply at each price. The equilibrium point E in above graph shows people who value human organs the most get it and those who do not value that much do not get it. Thus free market ensures allocative efficiency.

However, equity is not achieved as rich people may get human organs by paying higher prices even if they needed it less than some poor people  who could not pay the price. Also the suppliers of human organs are generally poor people who value their organs at a low price.