Scenario 20-3 The table below displays tax rates levied on three types of individuals in a hypothetical economy. Annual pre-tax Tax per Marginal utility | Marginal tax revenue in earnings per Type dollar of thousands in thousands person, in earned consumption per $0.01 increase in tax thousands High income 100 $0.18 5 50 Middle income 50 $0.15 30 120 Low income 20 $0.10 60 40 Question 42 1 pts What happens to marginal utility of consumption for high income earners as tax rates on income increase? O marginal utility increases. O marginal utility stays the same. O cannot be determined. O marginal utility decreases. Question 43 1 pts What happens to marginal tax revenue as tax rates on income increase? O cannot be determined. O marginal revenue stays the same. O marginal revenue decreases. O marginal revenue increases.Question 44 1 pts Refer to scenario 20-3. Suppose the value of an additional dollar of government revenue is 1. Given the values in the table, the theory of optimal income taxation suggests that O all of these answers are correct O tax rates on high income people should be reduced. O tax rates on middle income people should be reduced. O tax rates on low income people should be reduced. Question 45 1 pts Refer to scenario 20-3. According to the theory of optimal taxation, on which group should tax rates be increased? O low income only. O high income only. O middle and high income . O all groups. O middle income only