This economics assignment analyzes the impact of a tax on sugary drinks, focusing on tax incidence and its effects on the market. The student explores how the government's imposition of a tax influences both buyers and sellers, examining the concept of elasticity of demand and supply. The assignment uses figures to illustrate market equilibrium shifts, particularly in the context of sugar-sweetened beverages and their substitutes. It assesses the impact on the sugar market and the demand for alternative, low-sugar drinks. Additionally, the assignment delves into the own price elasticity of demand for sugary beverages, concluding that the tax is effective in reducing consumption, especially among children, teenagers, and low-income households who exhibit higher price sensitivity. References to key economic principles and relevant literature support the analysis.