Consider the economy of Pomistan, where citizens consume only apples. Assume that apples are priced at $1 each. The government has devised the following tax plans: Plan A Plan B • Consumption up to 1,000 apples is taxed at 50%. • Consumption up to 2,000 apples is taxed at 10%. • Consumption higher than 1,000 apples is taxed at 20%. • Consumption higher than 2,000 apples is taxed at 25%. Use the Plan A and Plan B 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 apples, 1,500 apples, and 2,500 apples, respectively. Consumption Level Plan A Plan B (Quantity of apples) Marginal Tax Rate Average Tax Rate Marginal Tax Rate Average Tax Rate (P nt) (Percent) (Percent) 500 1,500 2,500 Complete the following table by indicating whether each plan is a progressive tax system, a proportional tax system, or a regressive tax system. Progressive Proportional Regressive Plan A Plan B

Consider the economy of Pomistan, where citizens consume only apples. Assume that apples are priced at $1 each. The government has devised the following tax plans: Plan A Plan B • Consumption up to 1,000 apples is taxed at 50%. • Consumption up to 2,000 apples is taxed at 10%. • Consumption higher than 1,000 apples is taxed at 20%. • Consumption higher than 2,000 apples is taxed at 25%. Use the Plan A and Plan B 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 apples, 1,500 apples, and 2,500 apples, respectively. Consumption Level Plan A Plan B (Quantity of apples) Marginal Tax Rate Average Tax Rate Marginal Tax Rate Average Tax Rate (P nt) (Percent) (Percent) 500 1,500 2,500 Complete the following table by indicating whether each plan is a progressive tax system, a proportional tax system, or a regressive tax system. Progressive Proportional Regressive Plan A Plan B

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Tax Burden Consider a market with a vertical demand curve. If the government imposes taxes on this market, the tax burden: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Will be split evenly between buyers and sellers. b Will be split unevenly between buyers and sellers. Will fall entirely on buyers. d Will fall entirely on sellers.
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The figure below shows a market of good C. Suppose that the government levied a tax on C. Suppose that the consumers’ tax incidence is 15 and the price sellers receive is 8 when the size of the tax is T. Answer the value of T. Hint: Remember the relationship between the tax incidences and the size of tax.
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In 2007, the city of Canfield collected $500,000 in taxes and spent $450,000. In 2007, the city of Canfield had a Group of answer choices budget surplus of $450,000. budget surplus of $5,000. budget deficit of $50,000. budget surplus of $50,000.
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This was marked as incomplete but it is not. Please answer the question.
4 Economist B believes that if tax rates are cut, tax revenue is likely to fall. This economist most likely believes that the percentage decrease in tax rates will ______________________________ percentage rise in the tax base.
explain step by step, how is it like to graph?