Questions: 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 f(x) = (100x - 10,000) / (x - 140), 40 ≤ x ≤ 100. This function models the government tax revenue, f(x), in tens 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 increases. 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. Complete parts (a) through (c) below. B. When the tax rate is 40%, 600 billion in tax revenue is generated. C. If the tax rate increases by 40%, an additional 600 billion in revenue is generated. D. When the tax rate is 73%, 400 billion in tax revenue is generated. Identify the solution as a point on the graph. Choose the correct graph below. b. Rewrite the function by using long division to perform (100x - 10,000) + (x - 140).

Transcript text: During the 1980 s, 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 $f(x)=\frac{100 x-10,000}{x-140}, 40 \leq x \leq 100$. This function models the government tax revenue, $f(x)$, in tens 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 increases. 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. Complete parts (a) through (c) below. B. When the tax rate is $40 \%$, $\$ 600$ billion in tax revenue is generated. C. If the tax rate increases $40 \%$, an additional $\$ 600$ billion in revenue is generated. D. When the tax rate is $73 \%, \$ 400$ billion in tax revenue is generated. Identify the solution as a point on the graph. Choose the correct graph below. b. Rewrite the function by using long division to perform $(100 x-10,000)+(x-140)$.