Saturation points mean Tu is rising and mu is falling Tu is falling and ..
4.Ordinal Measurement of Utility According to this utility cannot be measured in numerical units, a consumer can (at best) rank his preferences in the sets of most preferred to least preferred sets. The correct answer is When the total utility is maximum, marginal utility is zero. As long as MU, derived from the consumption of additional units of the commodity, is positive, TU continues to rise. Understanding price elasticity of demand (Ed) is crucial as it summarises consumer responsiveness. This inverse relationship between the price a consumer is willing to pay and the quantity they consume is the essence of the…