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A state applies a 7 percent sales tax to consumer purchases of many items. These are data for a typical family: Annual Income: $60,000 Family

A state applies a 7 percent sales tax to consumer purchases of many items. These are data for a typical family: Annual Income: $60,000 Family Size: 2 Purchases of taxed items: $30,000 What statutory rate does the family pay? What average effective tax rate does the family pay?

5.0% and 5.0%

3.5% and 3.5%

7.0% and 3.5%

Cannot be computed from this information.

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