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The state government of Texas decides toincrease the state sales tax rate from 7% to 10%, and that this rate increase leads to an increase

The state government of Texas decides toincrease the state sales tax rate from 7% to 10%, and that this rate increase leads to an increase in tax revenues. If you consider what is true about the laffer curve, which of the following statements would be the most correct?

A. The optimal sales tax rate is greater than 10%

B. The state is currently on the upward sloping side of the Laffer curve

C. The optimal tax rate is lower than 10%

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