Suppose That Mario Consumes Eggplants and Tomatoes in the Ratio

question 7

Multiple Choice

Suppose that Mario consumes eggplants and tomatoes in the ratio of 1 bushel of eggplants per 1 bushel of tomatoes.His garden yields 30 bushels of eggplants and 10 bushels of tomatoes.He initially faced prices of $10 per bushel for each vegetable, but the price of eggplants rose to $40 per bushel, while the price of tomatoes stayed unchanged.After the price change, he would

• A)increase his eggplant consumption by 6 bushels.
• B)increase his consumption of eggplants by 8 bushels.
• C)decrease his consumption of eggplants by 8 bushels.
• D)decrease his eggplant consumption by at least 6 bushels.
• E)decrease his tomato consumption by at least 1 bushel.

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Definitions:

Progressive

Describes a taxation system where the tax rate increases as the taxable amount increases, aiming to distribute the tax burden more equitably.

Regressive

A term often used to describe taxes where the tax rate decreases as the taxable amount increases.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, representing the tax rate applied to each additional dollar of income.

Average Tax Rate

The fraction of total income that is paid as taxes, calculated by dividing the total tax amount by the total income.