Concept:A tax system can be identified by the way the tax rate changes as income changes.Explanation:On the diagram, curve III slopes downward from left to right.This means the tax rate falls as income increases.When the tax rate decreases as income rises, the system is regressive.A progressive tax would show the rate rising with income, while a proportional tax would show a constant flat rate.Value added tax is not represented by this type of curve.Answer:A. Regressive tax.
