Some Policymakers Have Argued That Products Like Cigarettes, Alcohol, and Sweetened

Multiple Choice

Some policymakers have argued that products like cigarettes, alcohol, and sweetened soda generate negative externalities in consumption.All else equal, if the government decided to impose a tax on soda, the equilibrium quantity of soda would ________ and the equilibrium price of soda would ________.

A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease