According to the graph, what is the impact of a pollution tax on this market?

A pollution tax has a negative impact on this market because it causes the demand for the good or service to decrease. The tax increases the cost of production for firms, which causes them to raise prices for consumers. As prices go up, consumers reduce their demand for the good or service and look for alternatives, such as less-polluting products. In this case, the pollution tax has caused the demand to drop significantly, thereby reducing the overall market size.