if-a-government-imposes-a-tax-on-sugary-drinks-what-is-a-potential-outcome-in-th

Question

If a government imposes a tax on sugary drinks, what is a potential outcome in the market for these drinks?

Accepted Answer

The price of sugary drinks increases, and the quantity sold decreases.

Answer

The price and quantity of sugary drinks remain unchanged.

Answer

The price of sugary drinks decreases, and the quantity sold increases.

Answer

The price of sugary drinks increases, and the quantity sold increases.