Toys are produced by a competitive industry santa claus, Business Economics

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Toys are produced by a competitive industry santa claus

Toys are produced by a competitive industry. Santa Claus gives away one million free toys each year. It costs Santa nothing to produce these toys.

Use a diagram to show how the existence of Santa Claus affects the supply of toys, the price of toys, the number of toys that consumers acquire, and the number of toys that are provided by commercial manufacturers.

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