What does it mean when traders are indifferent?

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In summary, the conversation is discussing a question about taxes, supply and demand curves, and tax revenue. One version of the question asks for the predicted tax revenue if traders who are indifferent between trading and not trading do not trade. The other version is unclear and the speaker is unsure of the difference between the two. They also mention a graph that is difficult to understand.
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theBEAST
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I have attached a picture of the question that deals with taxes, supply and demand curves and tax revenue.

I don't understand what the question is asking. There is another version of this:
"suppose that traders who are indifferent between trading and not trading do not trade. What is the predicted tax revenue for the government?"

I don't understand what the different between the two is.
 

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  • #2
theBEAST said:
I have attached a picture of the question that deals with taxes, supply and demand curves and tax revenue.

I don't understand what the question is asking. There is another version of this:
"suppose that traders who are indifferent between trading and not trading do not trade. What is the predicted tax revenue for the government?"

I don't understand what the different between the two is.

I believe what they are meaning by "indifferent" is neither making or losing money by trading. Although that graph is a little hard for me to understand as it doesn't make much sense. Maybe I am looking at it wrong?
 

What does it mean when traders are indifferent?

When traders are indifferent, it means that they have no preference or bias towards a particular asset or stock. They are neither bullish nor bearish and are not actively buying or selling.

What factors contribute to traders being indifferent?

Traders may become indifferent due to a lack of significant news or events that could influence the market, or when there is a general sentiment of uncertainty or stability in the market.

How does indifference affect the market?

When traders are indifferent, it can lead to lower trading volume and a lack of price movement in the market. This can make it difficult for traders to make significant profits or losses.

Is indifference a bad sign for the market?

Indifference can be seen as a neutral sign for the market. However, if it persists for an extended period, it could indicate a lack of confidence or interest in the market, which could potentially lead to a downturn.

How can traders take advantage of indifference?

Traders can take advantage of indifference by looking for opportunities in undervalued assets or stocks that may experience a price movement once the market sentiment changes. They can also use technical analysis to identify potential entry or exit points in the market.

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