4. Computing and interpreting average tax rates In a hypothetical economy, Darnell earns $37,000, Eleanor earns $74,000, and Jacques earns $111,000 in annual income. The following table shows the annual taxable income and tax liability for these three single individuals. For example, Darnell, who earns $37,000, owes $12,210 in taxes. Use the tax liability figures provided to complete the following table by computing the average tax rate for Darnell, Eleanor, and Jacques with an annual income of $37,000, $74,000, and $111,000, respectively. Taxable Income Tax Liability Average Tax Rate Taxable Income (Dollars) (Dollars) (Percent) Darnell 37,000 12,210 Eleanor 74,000 17,020 Jacques 111,000 19,980 The income tax system for this country isUse the tax liability figures provided to complete the following table by computing the average tax rate for Darnell, Eleanor, and Jacques with an annual income of $37,000, $74,000, and $111,000, respectively. Taxable Income Tax Liability Average Tax Rate Taxable Income (Dollars) /Dallara (Percent) Darnell 37,000 proportional Eleanor 74,000 regressive Jacques 111,000 progressive The income tax system for this country is5. Understanding marginal and average tax rates Consider the imaginary nation of Legumina, whose citizens onlyr consume carrots. Assume that the price of carrots is 51 each. The government of Legumina has developed two different tax schemes. the details of which are outlined below: Plan X Plan Y . Consumption up to 1,000 carrots is taxed at 5%. . Consumption up to 2,000 carrots is taxed at 40%. - Consumption higher than 1,000 carrots is taxed at 40%. n Consumption higher than 2,000 carrots is taxed at 10%. Use the Plan X anor Plan Y tax schemes to complete the following table by deriving the marginal anor average tax rates under each tax plan at the consumption levels of 600 carrots, 1,400 carrots, and 2,500 carrots, respectively. Consumption Level Plan X Plan Y (Quantity of carrots) Marginal Tax Rate Average Tax Rate Marginal Tax Rate Average Tax Rate (Percent) (Percent) (Percent) (Percent) 600 E E E C 1.400 E E E E 2500 E E E E 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 K O 0 ' Plan Y O 0