If a new tax is imposed on sugary drinks, how might this affect the demand and supply curves, and what could be the impact on consumers and producers?

A tax on sugary drinks would increase the cost of production, shifting the supply curve to the left. If demand remains unchanged, this would result in a higher equilibrium price and a lower quantity exchanged in the market. Consumers would face higher prices and might reduce consumption, while producers might see a decrease in revenue, especially if demand is relatively elastic. This policy might have health benefits by reducing sugary drink consumption but could negatively affect producers and consumers who enjoy these beverages.