Recently, many cities have attempted to pass laws taxing the sale of sugary drinks such as soda pop. If one of these laws passes, we would expect
A)the supply curve for soda pop to shift to the right.
B)the supply curve for soda pop to become more vertical.
C)the demand curve for soda pop to shift to the right.
D)the demand curve for soda pop to shift to the left.

Question

Quizplus · Accepted Answer

Taxing sugary drinks would increase the price of soda pop, making it less attractive to consumers. This would cause a decrease in demand for soda pop and a shift to the left in the demand curve.

Recently, Many Cities Have Attempted to Pass Laws Taxing the Sale