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Why low qmax value improve video quality?

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Maybe my questions doesn't make sense due to not understanding but please explain me what I miss because I did read posts and wiki and still it's not clear to me.

As I understand setting low value for qmax will improve the quality by increasing the bitrate.Maybe I didn't understood something but isn't lowing the Q(quantization) will decrease the quantization levels and thus the bitrate which means degradation in quality? Or in ffmpeg lowing Q means increasing the quantization levels? If the last is true so it make sense that lower qmax improves the quality.

If the above is true, so increasing qmax will decrease the quantization levels which means less bits for coding a quantization level. So, if number of bits for a level is lower, so total bits per frame will be lower, so how the encoder manage to get to the desired bitrate?


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