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U. Unuerslahding marginal and average tax rates Consider the economy of Citronia, where citizens consume only oranges. Assume that oranges are priced at $1 each.
U. Unuerslahding marginal and average tax rates Consider the economy of Citronia, where citizens consume only oranges. Assume that oranges are priced at $1 each. The govenment has devised the following tax plans: Plan A Consumption up to 1,000 oranges is taxed at 50%. Consumption higher than 1,000 oranges is taxed at 20%. Plan B Consumption up to 2,000 oranges is taxed at 15%. . Consumption higher than 2 ,000 oranges is taxed at 35%. Use the Plan A and Plan 8 tax schemes to complete the following table by deriving the marginal and average tax rates under each tax plan at the consumption levels of 500 oranges, 1,200 oranges, and 2,500 oranges, respectively Plan B Plan A Consumption Level (Quantity of oranges) Marginal Tax Rate Percent) Average Tax Rate Percent) Marginal Tax Rate (Percent Average Tax Rate (Percent) 500 1,200 2,500
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