Refer to Scenario 19.1 below to answer the question(s) that follow. SCENARIO 19.1: An individual earning $60,000 pays $12,000 in taxes. The marginal tax rate on any income earned above $60,000 is 25%. Refer to Scenario 19.1. Suppose this person earns $70,000 and gives a $1,000 tax deductible donation to charity. The donation reduces her tax payment by

A. $200.
B. $207.
C. $250.
D. $1000.


Answer: C

Economics

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 The consumer's income is $800.According to the above figure, what is the consumer's marginal rate of substitution in equilibrium?

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Economics