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What does it mean when traders are indifferent?

  1. Feb 4, 2012 #1
    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.

    Attached Files:

  2. jcsd
  3. Feb 4, 2012 #2
    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?
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