You are the manager of a firm that produces and markets a generic type of soft drink in a competitive market.In addition to the large number of generic products in your market, you also compete against major brands such as Coca-Cola and Pepsi.Suppose that, due to the successful lobbying efforts of beet sugar producers in Minnesota, Congress is going to levy a $0.50 per pound tariff on imported raw sugarthe primary input for your product.In addition, Coke and Pepsi plan to launch an aggressive advertising campaign designed to persuade consumers that their branded products are superior to generic soft drinks.

a. Based on this information, what can you expect to happen to the price and quantity sold of generic soft drinks?

State the determinant(s) of demand or supply that are affected by these events and the direction of movement

of the demand curve and/or supply curve.

b. Based on this information, draw a single supply and demand diagram to illustrate the impact of these events

on the equilibrium price and quantity of generic soft drinks.State explicitly if either price or quantity cannot be

determined as a result of your analysis.