Hey There!
Here's my understanding:
- CO2 is a reactant in photosynthesis, and is a substrate for some enzyme
- An increase in substrate concentration (or reactant concentration) increases the rate of the reaction
- This is because more enzyme-substrate collisions occur per second. (The frequency of enzyme-substrate collisions increases)
- Hence the rate of reaction increases
In photosynthesis there is the light-dependent stage (where water is split by sunlight) and the light independent stage (where carbon dioxide is mushed together to form glucose in the Krebs Cycle). So you would be increasing the rate of the light independent stage.
The graph would plateau because of either a limiting factor (eg sunlight/water) or because the enzyme has become "saturated".
Hope this helps!
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Edit: increasing the rate of the light-independent stage (not dependent).