Vincent Jackson Ph.D. Professor Economics & Director Center on Economic & Financial Education Florida State College at Jacksonville Kent Campus 3939 Roosevelt Blvd Jacksonville, Florida 32205

“ This program was made possible by the Council for Economic Education through funding from the United States Department of Education Office of Innovation and Improvement” Thursday June 14, 2012

Should a Market for Human Kidneys be Established? Supply and Demand for Human Kidneys

Supply and Demand A Look at the Market for Human Kidneys

Kidney Functions  Removes waste from the body through the Production of urine  Help to regulate blood pressure, blood volume and the chemical composition of the blood Kidney Failure  The inability of the Kidney to remove waste from the body and maintain electrolyte balance  The inability to produce urine and dispose of waste from the body. Treatment  Restrict protein intake, diuretics, dialysis, transplantation

“Please don’t take your organs to heaven, heaven knows we need them here on earth” Bumper sticker

Health Resources and Services Administration (HRSA) Organ Procurement & Transplantation Network Uniting people and information to help save live.

Hypothetical Kidney Data Price of Kidneys Kidneys Demanded Kidneys Supplied $ -0-80,00020,000 $10,00070,00030,000 $20,00060,00040,000 $30,00050,000 $40,00040,00060,000 $50,00030,00070,000

 At a zero (-0-) price, how many kidneys will be supplied/demanded?  Why would anyone donate a kidney when the price is zero?  What Conclusions can be drawn from the supply/demand for kidneys?

Where/how were the supply of kidneys obtained?

Law and Order Video: Black markets and Kidneys

The U.S. Economy is describes as a: Free enterprise Capitalist Mixed Market Economic System

In order for a Market to exist we must have: Buyer (Demanders) Seller (Suppliers) Product (Kidneys) When buyers and sellers come together in a market, a price established for the product. Example:  Amazon  E-harmony  Illegal Drugs  Housing  Child Pornography

Fundamentals of a Free Market Economy Freedom of Choice System of Markets and Prices Private ownership of Property (Property Rights) Competition Limited Government (Laissez Faire) Self-interest (utility maximizes)

How to use markets to deal with Scarcity Suppose the Federal Government repealed the law banning the sale of Kidneys (ie. a market for Kidneys is established). Can you predict what will happen in the Kidney market? How will the rise in price effect the behavior of Suppliers? Can you make any generalizations about the people who might sell a kidney at the equilibrium price but, would not donate a Kidney when the price is zero ($0) How will the rise in price effect the behavior of Patients? Can u make any generalizations about the people who might demand a kidney when the price is zero ($0), but will not buy one when the price reaches equilibrium?

According to the graph, how many transplants will occur each year at the new equilibrium?

Would a Free Market for Kidneys result in more or fewer deaths each year?

 Would a free market in kidneys be fair for poor people?  As a supplier of Kidneys?  As a Demander of Kidneys?

Suppose the Federal Government instituted a legal market for kidneys, How would this change the Supply curve? The Demand curve?

Suppose there was a successful campaign to encourage individuals to donate kidneys, what would you expect to happen in the market for kidneys?

NPR Podcast for Organs Poll: Americans Show Support for Compensation of Organ Donors By Scott Hensley

“ This program was made possible by the Council for Economic Education through funding from the United States Department of Education Office of Innovation and Improvement” Thank you for participating!!