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Laffer Curve

Consider the following statements about ‘Laffer Curve’:

  1. Its nature is hyperbolic when plotted between total revenue (Y-axis) & tax rate (X-axis).
  2. If tax rate is lower than the optimal value. Increasing the tax rate will lead to less revenue.
  3. The slope of the curve is positive in the region of tax rate more than the optimal value.

Choose the correct answer from the code given below:

A
2 only
B
2 and 3 only
C
1 and 2 only
D
None of the above.