HEALTH ECONOMICS 1 HEALTH ECONOMICS 11 Health Economics - Assessment 1 Name of the Student Name of the University Author

Running head: HEALTH ECONOMICS 1
Health Economics – Assessment 1
Name of the Student
Name of the University
Author Note

HEALTH ECONOMICS 2
Question 1
a) It is evident that there is a global shortage of organ donors, which is
leading to increased deaths. According to the World Health
Organisation, every year, over 100,000 organs transplants have
taken place since 2008, but the numbers are not supportive of the
actual demand of organ transplants, which is may more higher than
the said numbers. According to National Health Service, Blood and
Transplant department, United Kingdom, the numbers of the people
signing up for organ donation have notably increased, reaching over
25.3 million in 2017-2018. However, the shortage stills exists, owing
to several factors. Organ donation is deliberately linked with
political, moral, ethical, psychological and social problems, but the
major reasons causing organ shortage is misinformation and
ignorance. Lack of activities to develop a positive change in the
social conducts are influencing factors leading to shortage of organ
donors, hence decreased number of transplantation each year.
Furthermore, the instinct of self-preservation and the media
featured stories of organ commerce may have refrained the people
from donating their organs.
b) It is evident that there is a persistent shortage of organs globally,
which sis causing substantial loss of health and life. In the United
Kingdom, over 6000 people are waiting to receive organs for
transplantation and only 3000 organs transplantations are
performed each year in the United Kingdom, which is significantly

HEALTH ECONOMICS 3
lower than the required transplantations, and evidently not meeting
the demands.
Considering the given condition, where organs are made available in
the market and the pricing is the only indicator of quality for
consumers to rely on, the demand curve is expected to increase
with the increase in pricings. This can be assumed by correlating the
two facts, which are shortage of organs and the quality of organs
based on increased pricing.
Considering a hypothetical pricing of organs, the demand of the
organs will substantially increase with the pricing of the organ, as
consumers will try to get the best quality organs to ensure
successful transplantation and positive health outcome.
The following table shows a hypothetical scenario to showcase the
demand curve:Price (per
organ in
$)
Quantity
Demand
ed
(number
of
organs)
1 500
1.2 550
1.4 600
1.6 650
1.8 720
1 2 3 4 5 6 7
0
200
400
600
800
1000
800 700 600 550 500 460 420
Demand Curve
Price (per organ in $)
Quantity demanded (number of organs)
Linear (Quantity demanded (number of organs))
Price of Organ
Number of Organs

HEALTH ECONOMICS 4
The demand and supply of the organs will determine the pricing of
the organs and their quantity.
Price
(per organ in
$)
Quan
tity
demanded
(number of
organs)
Quan
tity
supplied
(number of
organs)
1 800 500
1.2 700 550
1.4 600 600
1.6 550 640
1.8 500 680
2 460 700
2.2 420 720
Equilibrium
Price
Excess Demand or
Shortage
Excess Supply or
Surplus
0.8 1 1.2 1.4 1.6 1.8 2 2.2 2.4
400
450
500
550
600
650
700
750
800
850
500
550
600
640
680 700 720
800
700
600
550
500
460
420
Demand-Supply Curve
Quantity demanded (number of organs)
Quantity supplied (number of organs)
Price of Organs
Number of Organs