of diamonds is astronomical and waters free how can this be how can it be that water which is so much more so much of a fundamental building block of our life is so much cheaper than diamonds which are not and the answer of course is the firt that so far you've only consider demand and not supply yes it's true the demand for water is much higher than demand for diamonds but the supply is even larger so that basically guess it's true that while that while water should be worth more in fact in the end the price of water is much lower because the twin forces demand and supply the demand is higher but the supply is much higher so the price ends up lower and that was his diamond water paradox okay well in this case it's a similar thing what's the demand what's going to demand for a kidney will turn demand for a kidney is going to be the fact that you die without it okay if you have no kidneys you're having kidney failure okay you'll die without it so basically terminus people will spend all their wealth as much money as they can have to get a kidney okay so the demand will be quite high the supply will be quite low sadly not many people are willing to be organ donors more relevantly a lot of people aren't in good situations to be organ donors okay as a result of supply is much lower than the demand so you have a situation with a high demand a low supply and the price went through the roof that's a positive analysis okay so we can understand pretty intuitive we don't need this course to understand why the price went up okay it's just the twin powers of demand and supply but what about the normative question which is should this sale be a lot I should ebay have allowed the sale to happen eBay at five million dollars cut it off and then passed the rule saying you can't auction your body parts on eBay okay should they have done that that's a normative question that's where you cannot miss gets really interesting which is you know you know you're smart enough to figure out why the price went up but this is where it gets interesting is should um people have been able to auction their kidney on eBay on the one hand many many people in this country died for want of a body part okay thousands to hundreds of thousand people die every year waiting for a transplant okay if someone's incredibly rich and they want a body part which to me is surplus because I have two kidneys why shouldn't they be allowed to buy it from me okay I'm better off because they can pay me a ton of money okay they're better off because they live so we've just described a transaction that makes both parties better off why shouldn't that be allowed to happen so you tell me can anyone does anyone argue does everyone think eBay was wrong yeah go ahead
NO_SEGMENT_TOKEN