Laffer curve as provided by supply-side economics. Although the simplified Laffer curve is usually illustrated as a straightforward symmetrical and continuous bell-shaped curve, when in reality the bell-shaped curve may be skewed or lop-sided to either side of the 'maximum' shown in the simplified version of the Laffer curve. Within the reality of complex and sudden changes to tax policy over time, the response of tax revenue to tax rates may vary dramatically and is not necessarily even continuous over time, when for example new legislation is enacted which abruptly changes tax revue expectations. Laffer explains the model in terms of two
Optimal foraging theory items that an animal should carry back to its nesting site or the optimal size of a food item that an animal should feed on. Figure 1, shows an example of how an optimal decision rule could be determined from a graphical model. The curve represents the energy gain per cost (E) for adopting foraging strategy x. Energy gain per cost is the currency being optimized. The constraints of the system determine the shape of this curve. The optimal decision rule (x*) is the strategy for which the currency, energy gain per costs, is the greatest. Optimal foraging models can