Utility maximization is an economic principle that suggests individuals make choices to achieve the highest level of satisfaction or happiness from their available resources. This concept is based on the idea that people have preferences and will allocate their time and money in a way that maximizes their overall utility, or benefit, from consumption. To illustrate, consider a consumer deciding between different products, such as food, clothing, and entertainment. By evaluating the satisfaction each option provides, the consumer will choose a combination that maximizes their total utility, given their budget constraints. This decision-making process is fundamental in understanding consumer behavior in economics.