As we move to higher indifference curves, compensated demand (or MWTP) curves shift to the right.

Question

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As we move to higher indifference curves, the level of utility increases, indicating a preference for more goods. However, compensated demand curves (or marginal willingness to pay - MWTP) do not necessarily shift right; they reflect the consumer's willingness to pay for an additional unit of a good, holding utility constant, and are not directly related to the position of higher indifference curves.

As We Move to Higher Indifference Curves, Compensated Demand (Or