Refer to below. Explain why the blue line (the line Item A is pointing at, i.e., line A) curves downward. Assume that the figure is for companies in the United States (where they use a classical tax system).

Item A Item B VL with No Distress Costs Value of Levered Firm, VL TD VL with Low Distress Costs - 1 VL with High Distress Costs 1 - - - 0 Dlow Digh Value of Debt, D