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Some policymakers have argued that products like​ cigarettes, alcohol, and sweetened soda generate negative externalities in consumption. All else​ equal, if the government decided to impose a tax on​ soda, the equilibrium quantity of soda would​ ________ and the equilibrium price of soda would​ ________.

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Answer: The correct answers are "decrease" and "decrease".

Explanation: Some policymakers have argued that products like​ cigarettes, alcohol, and sweetened soda generate negative externalities in consumption. All else​ equal, if the government decided to impose a tax on​ soda, the equilibrium quantity of soda would​ decrease and the equilibrium price of soda would​ decrease.

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