Consider the economy of Pomistan, where citizens consume only apples. Assume that apples are priced at...

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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 • Consumption up to 1,000 apples is taxed at 35%. • Consumption higher than 1,000 apples is taxed at 20%. 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 700 apples, 1,500 apples, and 2,500 apples, respectively. Consumption Level (Quantity of apples) Plan A 700 1,500 2,500 Plan B Plan A Plan B • Consumption up to 2,000 apples is taxed at 10%. • Consumption higher than 2,000 apples is taxed at 25%. Marginal Tax Rate (Percent) Average Tax Rate (Percent) Plan B Marginal Tax Rate (Percent) 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 Average Tax Rate (Percent) 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 • Consumption up to 1,000 apples is taxed at 35%. • Consumption higher than 1,000 apples is taxed at 20%. 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 700 apples, 1,500 apples, and 2,500 apples, respectively. Consumption Level (Quantity of apples) Plan A 700 1,500 2,500 Plan B Plan A Plan B • Consumption up to 2,000 apples is taxed at 10%. • Consumption higher than 2,000 apples is taxed at 25%. Marginal Tax Rate (Percent) Average Tax Rate (Percent) Plan B Marginal Tax Rate (Percent) 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 Average Tax Rate (Percent)

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Progressive Proportional and Regressive Taxes A progressive tax system ... View the full answer