what-does-the-parabolic-shape-of-the-laffer-curve-indicate-about-tax-revenue-as-

Question

What does the parabolic shape of the Laffer Curve indicate about tax revenue as tax size changes?

Accepted Answer

Tax revenue increases to a maximum point and then decreases as tax size increases.

Answer

Tax revenue increases continuously as tax size increases.

Answer

Tax revenue remains constant regardless of tax size.

Answer

Tax revenue decreases continuously as tax size increases.