Unit 1: Taxing Sugary Drink - Market failure solution?

The government have recently announced that a tax on sugary drinks should be introduced in England & Wales. The aim being to try to tackle growing obesity levels. Click here for the article.

Questions for discussions:

1. How will a tax work (you should be able to draw a diagram for this)
2. How effective will it be (reasons why it will work and why it might not)
3. Are there any other implications of this tax?

4. Will the other policies be more successful & how will they effect demand? (again, a diagram would be helpful here)