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Texas Gateway: Ap Macroeconomics: Appendices: Indifference Curves

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The indifference curve framework helps to clarify the logic of the underlying model. People cannot really put a numerical value on their level of satisfaction. However, they can, and do, identify what choices would give them more, or less, or the same amount of satisfaction. An indifference curve shows combinations of goods that provide an equal level of utility or satisfaction.

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