Supply-side economics that Nixon abandoned. The Laffer curve embodies a postulate of supply-side economics: that tax rates and tax revenues are distinct, with government tax revenues the same at a 100% tax rate as they are at a 0% tax rate and maximum revenue somewhere in between these two values. Supply-siders argued that in a high tax rate environment lowering tax rates would result in either increased revenues or smaller revenue losses than one would expect relying on only static estimates of the previous tax base. This led supply-siders to advocate large reductions in marginal income and capital gains tax rates to
Optimal foraging theory shown as a curve of energy gain per time spent in a patch (Figure 3). The curve starts off with a steep slope and gradually levels off as prey becomes harder to find. Another important cost to consider is the traveling time between different patches and the nesting site. An animal loses foraging time while it travels and expends energy through its locomotion. In this model, the currency being optimized is usually net energy gain per unit time. The constraints are the travel time and the shape of the curve of diminishing returns. Graphically, the currency (net energy gain per