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Suppose that income up to and including $30,000 is not taxed. income of $30.00] to $60,000 is taxed at 10%. and income over $},000 is
Suppose that income up to and including $30,000 is not taxed. income of $30.00] to $60,000 is taxed at 10%. and income over $},000 is taxed at 25%. If Sam is earning an income of 390.000, he will pay a MARGINAL tax rate of 96. The governor wants to levy a $1 excise tax on :1 product but wants to minimize the deadweight loss of the tax. To achieve this. the governor should choose a good for which the demand is and the supply[ is . O inelastic; elastic O elastic; inelastic O inelastic; inelastic O elastic; elastic
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