If the government imposes a tax on sugar, what is the expected impact on the market for sugary drinks?

• A. Demand shifts to the right, increasing equilibrium price and quantity.
• B. Demand shifts to the left, decreasing equilibrium price and quantity.
• C. Supply shifts to the right, decreasing equilibrium price and increasing quantity.
• D. Supply shifts to the left, increasing equilibrium price and decreasing quantity.

Answer: (D)