Concept explainers
During the 1980s, the controversial economist Arthur Laffer promoted the idea that tax increases lead to a reduction in government revenue. Called supply-side economics, the theory uses functions such as
This function models the government tax revenue, f(x), in lens of billions of dollars, in terms of the tax rate x the graph of the function is shown. It illustrates tax revenue decreasing quite dramatically as the tax rate increase. At a tax rate of (gasp) 100%, the government takes all our money and no one has an incentive to work. With no income earned, zero dollars in tax revenue is generated.
a. Find and interpret f (30). Identify the solution as a point on the graph of the function.
b. Rewrite the function by using long division to perform
Then use this new form of the function to find f (30). Do you obtain the same answer as you did in part (a)?
c. Is f a polynomial function? Explain your answer.
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Precalculus (6th Edition)
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