Consider the market for drinks that contain added sugars or sweeteners ('sugary drinks'). While many prefer these beverages over more healthy alternatives, the latter do serve as a viable substitute should the price of sugary drinks rise. Further, the inputs for sugary drinks are plentiful and cheap, allowing suppliers to easily adjust quantity supplied in light of a price increase. Suppose there is a proposed excise tax on sugary drinks. Will this tax be effective in reducing sugary drink consumption? Will it generate much government revenue? Explain and use a graph.

references: Parkin, M. & Bade, R. (2021) Microeconomics: Canada in the Global Environment, 11th Edition. Pearson Education Canada.