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I need help with the average tax rates Attempts 1.6 Average 1.6 / 2 5. Understanding marginal and average tax rates Consider the economy of

I need help with the average tax rates

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Attempts 1.6 Average 1.6 / 2 5. 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 35%. . 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 60%. 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 500 coconuts, 1,500 coconuts, and 3,000 coconuts, respectively. Consumption Level Plan A Plan B (Quantity of coconuts) Marginal Tax Rate Average Tax Rate Marginal Tax Rate Average Tax Rate (Percent) (Percent) (Percent) (Percent) 500 35 15 1,500 20 15 3,000 20 60

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