2. Problems and Applications Q5Suppose that your state raises its .docx

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2. Problems and Applications Q5Suppose that your state raises its sales tax from 5 percent to 6 percent. The state revenue commissioner forecasts a 20 percent increase in sales tax revenue.Which of the following are plausible as a result of this increase in the sales tax? Check all that apply.
marginal and average tax rates 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 10%. Consumption higher than 1,000

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