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Explain relationship between tu and mu with the help of schedule and graph |
Answer» \t1.\xa0TU 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.\t2.\xa0When TU reaches its maximum, MU becomes zero. TU stops rising at this stage. This point is known as\xa0a point\xa0of satiety.\t3.\xa0When consumption is increased beyond the point of satiety, TU starts falling as MU becomes negative. | |