5. Understanding marginal and average tax rates Consider the imaginary nation of Legumina, whose citizens only consume carrots. Assume that the price of carrots is $1 each. The government of Legumina has developed two different tax schemes, the details of which are outlined below: Plan X Plan Y . Consumption up to 1,000 carrots is taxed at 50%. . Consumption up to 2,000 carrots is taxed at 15%. . Consumption higher than 1,000 carrots is taxed at 20% Consumption higher than 2,000 carrots is taxed at 35%. Use the Plan X and Plan Y 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 carrots, 1,200 carrots, and 2,500 carrots, respectively. Consumption Level Plan X Plan Y (Quantity of carrots) Marginal Tax Rate Average Tax Rate Marginal Tax Rate Average Tax Rate (Percent) (Percent) (Percent) (Percent) 500 1,200 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 X O O Plan Y O O