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 (P 1 $8, P 2 $4, and P 3 $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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Question: 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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