When consumers maximize utility, they are equating the ratio of marginal utility to price across all goods consumed.

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When consumers maximize utility, they aim to get the most satisfaction from their spending, which involves equating the ratio of the marginal utility (additional satisfaction from consuming one more unit) to the price for all goods and services they consume. This principle is known as the equimarginal principle in economics.

When Consumers Maximize Utility, They Are Equating the Ratio of Marginal