Use the following to answer question: Figure 4.15 -(Figure 4.15) The consumer maximizes utility by consuming: A) 7 mushrooms and no spinach. B) 8 units of spinach and no mushrooms. C) on indifference curve U₂. D) approximately 4 mushrooms and 4 units of spinach.

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The consumer maximizes utility at the point where the budget constraint is tangent to the highest possible indifference curve (i.e. where MRS = price ratio). This occurs at a point approximately 4 mushrooms and 4 units of spinach, as shown in the graph. Therefore, choice D is the best choice.

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