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Income taxation in the United Kingdom is characterised by the following marginal tax rate: (x) = /2 (1 + (e x e -x )/(e x
Income taxation in the United Kingdom is characterised by the following marginal tax rate:
(x) = /2 (1 + (ex e-x )/(ex+ e-x) where 0 < < 1.
(a) Find the limits of (.) in 0 and +.
(b) Calculate the average tax rate paid by an individual with income y.
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