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Unformatted text preview: indifferent among. This is an indifference map: There is an infinite number of indifference curves. Consumers want to be on the highest possible indifference curve. Community indifference curves purport to show the preferences of the entire nation. Of all the points at which the country can produce, point E gives the highest utility. The line drawn through point E gives the equilibrium price ratio which brings producers and consumers into equilibrium . The country produces at point A and consumes at point B. So, they end up on a higher indifference curve....
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This note was uploaded on 11/22/2011 for the course FIN FIN1100 taught by Professor Bradrifkin during the Fall '09 term at Broward College.
- Fall '09
- Personal Finance