How does tax revenue change when a tax on a product begins at a low rate and is steadily increased?

Explanation

When a tax is imposed starting from a low rate and then gradually raised, tax revenue tends to increase at first because the tax base is not yet heavily impacted. However, after a certain point, further tax increases discourage consumption or production, causing the total revenue to decline. This pattern is often illustrated by the Laffer curve, where revenue rises and then falls as tax rates grow.