5. Understanding marginal and average tax rates Consider the economy of Pomistan, where citizens consume only apples. Assume that apples are priced at $1 each. The government has devised the following tax plans: Plan A Plan B Consumption up to 1,000 apples is taxed at 35%. . Consumption up to 2,000 apples is taxed at 15%. . Consumption higher than 1,000 apples is taxed at 20%. . Consumption higher than 2,000 apples is taxed at 35%. 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 levels of 300 apples, 1,500 apples, and 2,500 apples, respectively. Consumption Level Plan A Plan B (Quantity of apples) Marginal Tax Rate Average Tax Rate Marginal Tax Rate Average Tax Rate Percent Percent Percent (Percent 300 1,500 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 Plan A O Plan B O O O Grade It Now Save & Continue Continue without saving