The sales tax rate applied to all purchases within a state was 0.04 (4 percent) throughout 2013 but increased to 0.05 (5 percent) during all of 2014. The state government collected all taxes due, but its tax revenues were equal to $40 million each year. (See pages 130 131.)

A. What happened to the sales tax base between 2013 and 2014?

B. What could account for this result?

The sales tax rate applied to all purchases within a state was 0.04 (4 percent) throughout increased to 0.05 (5 percent) during all of 2014. The state government collected all out its tax revenues were equal to $40 million each year. A. What happened to the sales tax base between 2013 and 2014? B. What could account for this result