Jeff's trade region is bounded by his no-trade PPF and his best possible trades     As we noted at the beginning of this section, economic reasoning can't tell us what terms of trade will be agreed on by trading partners. We do know that no one would willingly agree to terms of trade worse than their own no-trade opportunity cost. This enables us to bound the region in which a trading partner's after-trade bundle must lie.

    To the right we show Jeff's worst possible terms of trade, which are his own no-trade PPF, and his best possible terms of trade, which he could only reach by convincing Jenn to accept terms equivalent to staying on her no-trade PPF. Any after-trade bundle must lie between these two lines or in the green region to the right labeled Jeff's Trade Region.

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