The country of Airess has a tax rate of 10% on the first $25,000, then a tax rate of 25% on the next $50,000 and 40% on any income exceeding $75,000. The Airess tax system includes a $10,000 exemption per dependent.

(i) The Jones family has three members and its total household income is $70,000/year. Calculate the marginal and average tax rates of the Jones family and illustrate them using graphs.

(ii) The Robinson family has three members and its total household income is $120,000/year. Calculate the marginal and average tax rates of the Robinson family and illustrate them using graphs.

(iii) Consider the following tax reform: Airess is amending its tax code to a flat tax rate of 35% with a $35,000 exemption per household member.