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Consider the imaginary nation of Legumina, whose citizens only consume carrots. Assume that the price of carrots is $1 each. The government of Legumina has
Consider the imaginary nation of Legumina, whose citizens only consume carrots. Assume that the price of carrots is $1 each. The government of Legumina has developed two different tax schemes, the details of which are outlined below: Plan X Consumption up to 1,000 carrots is taxed at 50%. Consumption higher than 1,000 carrots is taxed at 20%. Plan Y Consumption up to 2,000 carrots is taxed at 15%. Consumption higher than 2,000 carrots is taxed at 35%
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