The Laffer Curve illustrates that in some circumstances the

The Laffer Curve illustrates that, in some circumstances, the government can reduce a tax on a good and increase

Solution

ANSWER:

The correct answer is option b as when the government reduces the tax on a good , people are more likely to consume that good as now the price will be lower , leading to more quantity demanded of that good leading to more production and ultimately increase in the revenue of government with more tax being collected.