Plan A• Consumption up to 1,000 coconuts is taxed at 50%.• Consumption higher than 1,000 coconuts is taxed at 20%.Consumption Level(Quantity of coconuts)Use the Plan A and Plan B tax schemes to complete the following table by deriving the marginal and average tax rates under each tax plan at theconsumption level of 600 coconuts, 1,200 coconuts, and 2,500 coconuts, respectively.Plan A6001,2002,500Plan BPlan APlan BConsumption up to 2,000 coconuts is taxed at 10%.• Consumption higher than 2,000 coconuts is taxed at 25%.Marginal Tax Rate(Percent)●Plan BComplete the following table by indicating whether each plan is a progressive tax system, a proportional tax system, or a regressive tax system.Progressive Proportional RegressiveAverage Tax Rate Marginal Tax Rate Average Tax Rate(Percent)(Percent)(Percent)

A progressive tax is a tax wherein the tax rate increases as the taxable amount increases. The term…

Plan A • Consumption up to 1,000 coconuts taxed at 50%. • Consumption higher than 1,000 coconuts is taxed at 20%. Use the Plan A and Plan B tax schemes to complete the following table by deriving the marginal and average tax rates under each tax plan at the consumption level of 600 coconuts, 1,200 coconuts, and 2,500 coconuts, respectively. Consumption Level (Quantity of coconuts) 600 1,200 2,500 Plan A Plan B . Consumption up to 2,000 coconuts is taxed at 10%. . Consumption higher than 2,000 coconuts is taxed at 25%. Marginal Tax Rate (Percent) Plan B Average Tax Rate Marginal Tax Rate (Percent) (Percent) Average Tax Rate (Percent) Complete the following table by indicating whether each plan is a progressive tax system, a proportional tax system, or a regressive tax system. Progressive Proportional Regressive

Plan A • Consumption up to 1,000 coconuts taxed at 50%. • Consumption higher than 1,000 coconuts is taxed at 20%. Use the Plan A and Plan B tax schemes to complete the following table by deriving the marginal and average tax rates under each tax plan at the consumption level of 600 coconuts, 1,200 coconuts, and 2,500 coconuts, respectively. Consumption Level (Quantity of coconuts) 600 1,200 2,500 Plan A Plan B . Consumption up to 2,000 coconuts is taxed at 10%. . Consumption higher than 2,000 coconuts is taxed at 25%. Marginal Tax Rate (Percent) Plan B Average Tax Rate Marginal Tax Rate (Percent) (Percent) Average Tax Rate (Percent) Complete the following table by indicating whether each plan is a progressive tax system, a proportional tax system, or a regressive tax system. Progressive Proportional Regressive

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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