Given below are two statements:
Statement 1: When TU is constant is indicates that MU has becomes zero. 
Statement 2: When TU starts falling that means now MU has become positive.
Which statement/s are correct?

Statement 1 is true and Statement 2 is false

The correct answer is Option 3: Statement 1 is true and Statement 2 is false

Here's why:

• Statement 1: True. When Total Utility (TU) is constant, Marginal Utility (MU) is indeed zero. This is because TU doesn't change, so additional units of the good provide no extra satisfaction.

• Statement 2: False. When TU starts falling, it means Marginal Utility (MU) has become negative, not positive. A falling TU indicates that each additional unit consumed is decreasing total satisfaction.