1 of 1 1) Suppose someone has an income of $x and pays $y in taxes. a) What is the effective tax rate? b) Suppose this person's income increased to $(x + 2,000) and so they now pay $(y + 300) in taxes. iv. What is the marginal income? What is the marginal tax? What is the marginal tax rate? Suppose the tax schedule below is what was used to calculate this person's taxes. What values must their taxable income fall between? Explain how you know this. Table 1. Single Taxable Income Tax Brackets and Rates, 2016 If taxable income is over- 50 $9,275 $37,650 $91,150 $190,150 $413,350 $415,050 but not over $9,275 $37,650 $91,150 $190,150 $413,350 $415,050 no limit the tax is: 10% of the amount over 50 $927.50 plus 15% of the amount over $9,275 $5,183.75 plus 25% of the amount over $37,650 $18,558.75 plus 28% of the amount over $91,150 $46,278.75 plus 33% of the amount over $190,150 $119,934.75 plus 35% of the amount over $413,350 $120,529.75 plus 39.6% of the amount over $415,050 c) Using the tax schedule above, suppose someone paid $7,000 in taxes. What was their taxable income?