Socrates is still attempting to elucidate his point; Glaucon asks that Socrates continue the analogy. But Socrates introduces a new illustration, The Analogy of the Divided Line. Socrates is still making the distinction between knowledge and belief, the difference between the Forms and ordinary objects. (We should also recall here that Socrates says that objects of belief are like reflections of objects of knowledge.) At this juncture of the dialogue, Socrates argues that there exist two degrees of knowledge and two of belief.
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