type your response in the box. read this scenario, and then answer the question that follows. mark and julia…

type your response in the box. read this scenario, and then answer the question that follows. mark and julia are two working individuals in their early 20s. they are each ready to furnish their first apartment after college and are excited to buy new televisions for their respective living rooms. mark has saved money from his $25,000 annual salary to buy a new television, and julia has saved money from her $100,000 annual salary for the same purpose. they both choose the same tv, which costs $1,000. since they buy their tvs in the same town, they each pay 10 percent in sales tax, bringing the total cost for each tv to $1,100. who feels a greater effect from the 10 percent sales tax, mark or julia? why?

type your response in the box. read this scenario, and then answer the question that follows. mark and julia are two working individuals in their early 20s. they are each ready to furnish their first apartment after college and are excited to buy new televisions for their respective living rooms. mark has saved money from his $25,000 annual salary to buy a new television, and julia has saved money from her $100,000 annual salary for the same purpose. they both choose the same tv, which costs $1,000. since they buy their tvs in the same town, they each pay 10 percent in sales tax, bringing the total cost for each tv to $1,100. who feels a greater effect from the 10 percent sales tax, mark or julia? why?

Answer

Brief Explanations:

Mark has a lower annual salary of $25,000 compared to Julia's $100,000. The $100 sales - tax amount is a larger proportion of Mark's income. For example, $100 is $\frac{100}{25000}=0.4%$ of Mark's income, while it is $\frac{100}{100000}=0.1%$ of Julia's income. So Mark feels a greater impact.

Answer:

Mark feels a greater effect from the 10 percent sales tax because the $100 sales - tax amount is a larger proportion of his $25,000 annual salary compared to Julia's $100,000 annual salary.