The basic goals of total utility maximization, total profit maximization, and total welfare maximization explain most market activity True or False True False The "law of demand" explains that the quantity of a good demanded does what? Multiple Choice Decreases as its price falls, ceteris paribus. Increases as its price rises, ceteris paribus Does not change when price changes. Increases as its price falls, ceteris paribus. Where do we find the "equilibrium price" in a market? Multiple Choice The market supply curve intersects the x-axis. O O The market supply curve intersects the y-axis. O The market demand curve intersects the y-axis. O The market supply curve intersects the market demand curve. A decrease in the price of medicine below equilibrium will do what? Multiple Choice Cause a surplus of medicine. Cause a shortage of medicine. Shift the supply curve of medicine to the right. Shift the demand curve for medicine to the right. Say you want to have a picnic with your romantic partner but you have a budget for the month that you can't go over. You aren't sure if you can afford it and stay under your budget, so you decide to inwestigate. You will need to pay attention to the cost of a picnic blanket and picnic basket because both of these are what? Multiple Choice Substitutes in production Complements in production by-products Substitutes in consumption Complements in consumption