There have been proposals that a tax be imposed on sugar-laden soft drinks in an attempt to reduce their consumption.Assume for simplicity that all bottled soft drinks are the same size.Suppose the initial market equilibrium is P = $2.00 and Q = 1000. 
FIGURE 4-4
-Refer to Figure 4-4.Suppose the government imposes a tax of $0.60 per soft drink purchased.The change in total expenditure on soft drinks is
Definitions:
Opportunity Cost
Forgoing the benefit of the next preferable alternative comes at a cost during decision-making.
Production Possibility Frontier
A curve depicting all maximum output possibilities for two goods, given a set of inputs and production technology.
International Trade
The swapping of commodities and services among different nations.
Unskilled Workers
Individuals who lack specialized skills, training, or qualifications for particular jobs or industries.
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