2. During the Reagan administration, economist Arthur Laffer argued in favor of lowering income tax rates in order to increase tax revenues. Like most economists, he believed that at tax rates above a certain level, tax revenue would fall

(because high taxes would discourage some people from working) and that people would refuse to work at all if they received no income after paying taxes. This relationship between tax rates and tax revenue is graphically summarized in what is widely known as the Laffer curve. Plot the Laffer curve relationship, assuming that it has the shape of a nonlinear curve. The following questions will help you construct the graph.