Some policymakers have argued that products like cigarettes, alcohol, and sweetened soft drinks generate negative externalities in consumption.If the government decided to impose a tax on pop, the government will cause

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By imposing a tax on sweetened soft drinks, the government is making consumers pay a higher price for the product, thereby internalizing the externalities associated with the consumption of these products. Consumers will be forced to bear the full cost of their consumption decision, including any negative externalities, such as the health effects caused by excessive consumption of sugar-sweetened beverages. This is likely to reduce the demand for sweetened soft drinks and incentivize consumers to switch to healthier alternatives. In this way, the tax helps to internalize the negative externalities associated with the consumption of sweetened soft drinks.

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