To identify the correct statements, each proposition is analyzed:
- (A) Marginal Utility is the change in Total Utility due to consumption of one additional unit of commodity. This statement accurately defines Marginal Utility (MU) as the additional satisfaction derived from consuming one more unit of a good or service. This statement is correct.
- (B) Two Indifference Curves intersect each other. Indifference curves depict distinct satisfaction levels. Their intersection would imply conflicting preferences, contradicting fundamental consumer theory. Therefore, this statement is incorrect.
- (C) Marginal Utility becomes Zero at a level when Total Utility remains constant. When Marginal Utility (MU) is zero, Total Utility (TU) reaches its maximum and stays constant. Consequently, this statement is correct.
- (D) Diminishing Marginal Rate of Substitution does not affect Indifference Curve. The Diminishing Marginal Rate of Substitution (MRS) directly influences the curvature of the indifference curve by dictating the rate at which a consumer exchanges one good for another. Hence, this statement is incorrect.
- (E) Indifference Curve slopes downwards from left to right. Indifference curves typically exhibit a downward slope from left to right, signifying that maintaining the same utility level requires a reduction in one good for an increase in another. This statement is correct.
Based on this analysis, the correct statements are (A), (C), and (E). The correct option is therefore: (A), (C) and (E) only