What happens at the point of satiety ______________ *
a) TU is rising and MU is falling
b) TU is maximum and MU is zero
c) TU falls and MU becomes negative
d) None of these
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Answer:
MU is positive Tu is
Explanation:
1. TU increases with an increase in consumption of a commodity as long as MU is positive. In this phase, TU increases but a diminishing rate as MU from each successive unit tends to diminish. ... When consumption is increased beyond the point of satiety, TU starts falling as MU becomes negative.
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