Concept:A movement between two points on the same indifference curve shows a trade-off between two goods.
Explanation:At point
M, the consumer has more of good
X and less of good
Y.
At point
K, the consumer has more of good
Y and less of good
X.
Because both points give the same level of satisfaction, the consumer must give up some
X in order to get more
Y.
So, to move from
M to
K, the consumer must increase the consumption of
Y and reduce the consumption of
X.
Answer:Option D: consumption of
Y and reduce the consumption of
X.
