The optimal consumption rule implies that if Pascal is maximizing his utility by spending all of his income on two goods, concert tickets and cab rides, with prices equal to PTickets and PRides, respectively, then it must be the case that MUTickets/MURides = PTickets/PRides.

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The optimal consumption rule, also known as the marginal rate of substitution equals the price ratio, is a fundamental principle in microeconomics. It states that the consumer should allocate their income between goods in such a way that the marginal utility per dollar spent on each good is equal. This implies that the ratio of the marginal utilities of two goods must be equal to the ratio of their prices for the consumer to be in equilibrium. Therefore, MUTickets/MURides = PTickets/PRides.

The Optimal Consumption Rule Implies That If Pascal Is Maximizing