Question

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 1

Answer:Mark

Explanation:

This is because his annual salary is lower so he doesn’t have as much money to splurge.

Answer 2

Answer:

While they both pay the same amount, the tax affects Mark more because he earns significantly less than Julia does.

Explanation:

edmentum/plato