What Type of Tax Rate Structure Is Indicated in the Following

question 148

Essay

What type of tax rate structure is indicated in the following example? Explain.
$\begin{array}{cc} \text { When income equals}& \text { Total tax equals}\\\$ 10,000 & \$ 300 \\\$ 75,000 & \$ 4,500 \\\$ 100,000 & \$ 8,000\end{array}$

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Definitions:

Law of Demand

The economic principle stating that as the price of a good increases, demand for that good will decrease, and vice versa.

Marginal Cost (MC) Curve

A graphical representation showing how the cost to produce one additional unit of output changes as production volume increases.

Pollution Abatement

Measures and efforts undertaken to reduce, control, or eliminate pollution from various sources to protect the environment.

Consumer Tastes

The preferences and inclinations of consumers which influence their buying behavior and choice of products.