If a person is willing to trade one good for another,their new basket after the trade must lie on a lower indifference curve than their original basket.

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Quizplus · Accepted Answer

Trading one good for another implies that the person moves to a different basket of goods that they perceive to be of equal or greater utility, which would place them on the same or a higher indifference curve, not a lower one. Indifference curves represent levels of utility; trading for a preferred or equally preferred combination of goods does not reduce utility.

If a Person Is Willing to Trade One Good for Another,their