Moral Hazard
Using simple supply and demand analysis (No Graphs – Just conceptualize), think about the system of allocating human kidneys.
The law forbids the sale of human organs but allows their voluntary donation. This means that there is a bigger shortage of kidneys than there otherwise would be. Does this fact alter your view of the law forbidding the sale of human organs? How about blood?
Does the below fact alter your view of the law forbidding the sale of human organs? How about blood?
