2. Understanding marginal and average tax rates Consider the economy of Cocoland. where citizens consume only coconuts. Assume that coconuts are priced at $1 each. The government has devised the following tax plans: Plan A Plan B - Consumption up to 1,000 coconuts is taxed at 50%. - Consumption up to 2,000 coconuts is taxed at 15%. - Consumption higher than 1,000 coconuts is taxed at 20%. - Consumption higher than 2,000 coconuts is taxed at 35%. Use the Plan A and Plan 3 tax schemes to complete the following table by deriving the marginal and average tax rates under each tax plan at the consumption levels of 500 coconuts, 1,200 coconuts, and 2,500 coconuts, respectively. Consumption Level Plan A Plan B (Quantity afcocanuts) Marginal Tax Rate Average Tax Rate Marginal Tax Rate Average Tax Rate (Percent) (Percent) (Percent) (Percent) 500 1,200 2,500 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 O O