The document discusses tax schemes in the fictional nation of Legumina, where citizens consume carrots priced at $1 each. It outlines two tax plans, X and Y, and asks for the calculation of marginal and average tax rates at different consumption levels: 600, 1,200, and 2,500 carrots. Additionally, it requires an evaluation of whether each plan is progressive, proportional, or regressive.

1. 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:
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 600 carrots, 1,200 carrots,
and 2,500 carrots, respectively. Complete the following table by indicating whether each plan is
a progressive tax system, a proportional cax system, or a regressive tax system.