Jurisdiction z levies an excise tax on retail purchases of jewelry and watches. the tax equals 3 percent of the first $1,000 of the purchase price plus 1 percent of the purchase price in excess of $1,000. individual c purchases a watch for $760. compute c’s excise tax and average excise tax rate. individual d purchases a watch for $6,840. compute d’s excise tax and average excise tax rate. is jurisdiction z’s excise tax vertically equitable?

hi : ) i found this so i hope this !

"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"

i might look it up later.

answer; is the sum of all individual demands curves;