To combat teenage obesity, Congress has proposed a tax on sugared sodas and other sugared drinks.

a) Using two graphs—one for the sugared soda market and another for a typical soda producer—show the short-run and long-run impact of this tax on existing producers and on market price and quantity.

b) Again using two graphs, show the impact of the tax on an untaxed substitute good such as naturally flavored, unsweetened bottled water.

c) Do you think that such a tax results in a more efficient allocation of resources? Why or why not?