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Explain graphically how indifference analysis can be used to derive a demand curve. Instructions: The diagram on the left shows three optimums (points a, b,
Explain graphically how indifference analysis can be used to derive a demand curve.Instructions:The diagram on the left shows three optimums (points a, b, and c) corresponding to three prices for good X (P1= $8, P2= $4, and P3= $2). Corresponding quantities are shown on the horizontal axis. Use the tool provided 'Demand' to plot the three price-quantity combinations corresponding to points a, b, and c.
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