urisdiction Z levies an excise tax on retail purchases of jewelry and watches. The tax equals 3 percent of the first $1,000 of the purchase price plus 1 percent of the purchase price in excess of $1,000.

Required:

1. Individual C purchases a watch for $400. Compute Cs excise tax and average excise tax rate.
2. Individual D purchases a watch for $4,200. Compute Ds excise tax and average excise tax rate.
3. Is Jurisdiction Zs excise tax vertically equitable?