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0 10 20 30 40 50 60 70 80 90 100 1400 1200 1000 800 600 400 200 0 Tax Revenue (Thousands of dollars) Tax Rate (Percent) After the maximum revenue point, higher taxes lead to lower tax revenues, because the decrease in tax revenue from the higher per-bottle tax is outweighed by the decrease in tax revenue due to the declining number of bottles sold. the increase in tax revenue from the higher per-bottle tax is outweighed by the decrease in tax revenue due to the declining number of bottles sold. the increase in tax revenue from the higher per-bottle tax is outweighed by the increase in tax revenue due to the declining number of bottles sold. the decrease in tax revenue from the higher per-bottle tax is outweighed by the inrcease in tax revenue due to the declining number of bottles sold