How can lowering a tax influence the total tax revenue collected?

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It will not affect the amount of tax revenue generated.It invariably decreases tax revenue no matter how high the tax was initially.It might boost tax revenue if the original tax rate was excessively high.It leads to decreased market efficiency.It guarantees an increase in market demand.

Explanation

Reducing a tax can sometimes raise total tax revenue if the initial tax rate was very high, because lower rates may encourage more economic activity and reduce tax avoidance, thereby expanding the taxable base.