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If the sales tax increases to 12%, what percentage of our Archie's income will jeff now pay in text on his $150 bill? Show your work. 2. Will he make adjustments to his purchases and if yes, how will he adjust? If no, why not? 3. If the sales tax increases to 12%, what percentage of Jeff's income will Archie pay in tax on his $150 bill? Show your work.

If the sales tax increases to 12%, what percentage of our Archie's income will jeff now pay in text on his $150 bill? Show your work. 2. Will he make adjustments to his purchases and if yes, how will he adjust? If no, why not? 3. If the sales tax increases to 12%, what percentage of Jeff's income will Archie pay in tax on his $150 bill? Show your work.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter3: Demand Analysis
Section: Chapter Questions
Problem 11E: Federal excise taxes on gasoline vary widely across the developed world. The United States has the...
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1. If the sales tax increases to 12%, what percentage of our Archie's income will jeff now pay in text on his $150 bill? Show your work. 2. Will he make adjustments to his purchases and if yes, how will he adjust? If no, why not? 3. If the sales tax increases to 12%, what percentage of Jeff's income will Archie pay in tax on his $150 bill? Show your work.
A3.06.2 Why Do We Pay Taxes Assignment (1) -. * O Search Adrian Ashford AA Draw Design Layout References Mailings Review View Help MACROECONOMICS Part II: Impact of a Sales Tax Increase Archie Windsor is a 19 year old college student at the University of Washington in Seattle. He works at Royal Foods earning $10.25/hour and his salary is used to purchase mostly goods and services such as food and basic day to day items. Also, to save money, he does not own a car but relies on campus transportation and the local area transit system to travel. Most of his food items are purchased at his job for convenience. Archie estimates 45% of his income is spent on food and basic items. Jeff Gates is a 60 year old CEO of a major corporation and lives in Medina, Washington. His hourly salary is roughly estimated to be $4400. He purchases food, basic day to day items as well as various luxury goods. Jeff hates shopping so relies on grocery delivery services for most of his food purchases. However, he does like to attend local farmers markets and artisanal grocery stores for his favorite specialty items. He estimates 15% of his income is spent on food and basic items. The current sales tax is 10% for the city of Seattle. This means that each time Archie and Jeff purchase $150 worth of food and basic items, they must also pay $15 in sales tax.
Transcribed Image Text:A3.06.2 Why Do We Pay Taxes Assignment (1) -. * O Search Adrian Ashford AA Draw Design Layout References Mailings Review View Help MACROECONOMICS Part II: Impact of a Sales Tax Increase Archie Windsor is a 19 year old college student at the University of Washington in Seattle. He works at Royal Foods earning $10.25/hour and his salary is used to purchase mostly goods and services such as food and basic day to day items. Also, to save money, he does not own a car but relies on campus transportation and the local area transit system to travel. Most of his food items are purchased at his job for convenience. Archie estimates 45% of his income is spent on food and basic items. Jeff Gates is a 60 year old CEO of a major corporation and lives in Medina, Washington. His hourly salary is roughly estimated to be $4400. He purchases food, basic day to day items as well as various luxury goods. Jeff hates shopping so relies on grocery delivery services for most of his food purchases. However, he does like to attend local farmers markets and artisanal grocery stores for his favorite specialty items. He estimates 15% of his income is spent on food and basic items. The current sales tax is 10% for the city of Seattle. This means that each time Archie and Jeff purchase $150 worth of food and basic items, they must also pay $15 in sales tax.
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