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D The graph below depicts the demand and supply curves in the market for soda. You will use this information to examine the effects
D The graph below depicts the demand and supply curves in the market for soda. You will use this information to examine the effects of an excise tax in this market. Price $2.00 Supply + Tax $1.75 Supply $1.50 $1.25 $1.00 $0.75 $0.50 $0.25 Demand 20 40 40 60 80 100 120 140 Quantity of Soda (in thousands of cans) In your essay, you should identify the initial pre-tax equilibrium price and quantity in this market, the post-tax quantity of soda that gets bought and sold, the post-tax price that consumers must pay for a can of soda, the post-tax price that sellers receive for a can of soda, the change in consumer surplus caused by this tax, and the change in producer surplus caused by this tax. Be careful to correctly specify units.
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