With the initial incomes of 50, 80 and 110. Suppose that the three group members chose income-tax rates of 30%, 40%, and 80%. Using the table provided, what would be the after-tax incomes of the three group members?
62, 80, 98
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Explanation: The income-tax rate that is implemented is the median (middle) one chosen -- in this case 40%. From the table provided, we see that if the tax rate is 40%, the final after-tax incomes are 62, 80 and 98.
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