A utility maximizing household will allocate its expenditure so that?

A utility maximizing household will allocate its expenditure so that the utility of the last naira spent on each commodity is equal. This is known as the principle of equal marginal utility. According to this principle, a household will continue to allocate its expenditure across different goods and services until the utility it derives from the last unit of spending on each item is equal. In other words, the household will allocate its spending in a way that maximizes the total utility it derives from all the goods and services it consumes, subject to its budget constraint. Therefore, the household will spend more on goods that provide higher levels of satisfaction (utility) and less on goods that provide lower levels of satisfaction, until the marginal utility of the last naira spent on each good is equal.