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Mandalorian Armor is a sought after product in the Galaxy, but is only manufactured in small quantities for specific Mandalorians. Therefore, this is NOT a
Mandalorian Armor is a sought after product in the Galaxy, but is only manufactured in small quantities for specific Mandalorians. Therefore, this is NOT a graph for Mandalorian Armor. It is instead, a market graph of Disney's sale and exploitation of "Baby Yoda" dolls. The US government has decided to tax Baby Yoda doll production, as it is seen as bad for real Star Wars fans' health. 1) a) What is the equilibrium price and quantity of Baby Yoda dolls before the tax? (2 pts) b) Which letters represent consumer surplus before the tax? (1 pt) c) Which letters represent producer surplus before the tax? (1 pt) 2) Once the US government brilliantly taxes the wretched Disney corporation for its exploitation of the Yoda image, does the price paid by consumers rise by the full amount of the tax? (1 pt) Explain your answer. (2 pts) 3) So, since this amazing new tax is in place, identify all of the following (after tax is imposed) a) price Disney (producer) gets to keep (1 pt) b) the US Government tax revenue (stated both in letter area and in dollars) (2 pts) c) the consumer surplus after the tax (use letter area)
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