Final answer:
A reduction in the soda tax should increase the supply of sodas, decrease the equilibrium price, and increase the equilibrium quantity, with the supply curve shifting to the right in a supply and demand graph.
Step-by-step explanation:
The government can influence consumer behavior by implementing a soda tax as a measure to curb obesity. The question asks specifically what should happen to the supply of sodas, equilibrium price, and equilibrium quantity if there is a reduction in the soda tax. When the soda tax is decreased, the cost of production for sellers is reduced. As a result, the supply of sodas will increase because they can produce sodas at a lower cost and may be more willing to provide a larger quantity at a lower price.
In a supply and demand graph, the supply curve would shift to the right, representing an increase in supply. This would typically lead to a lower equilibrium price and a higher equilibrium quantity, assuming that demand remains constant. Graphically, the new equilibrium would occur at the intersection of the new supply curve and the original demand curve.