Question:
[Positive analysis] As we all know, at present it is illegal for parents who want to adopt a child to pay the birth mother for, or to offer to pay for, the babies they adopt. (Adoption agencies do charge for their services, of course.) Use economic theory to analyze the (potential) market for adoptive babies and answer this: what would happen if such payments were allowed? (Draw yourself a supply-and-demand graph to help you think about this question.)