If people can benefit from a good even if they do not pay for it, the good is nonrival

Why do firms spend money on costly innovation?

A. Competitive markets leave firms no choice but to innovate. B. Innovation is a low-risk activity. C. Innovation always results in higher profits for firms. D. Innovation is usually profitable because the majority of innovations reach the market place. E. Because innovation is beneficial for society and firms are motivated to act in ways that are beneficial for society.

Refer to the information provided in Figure 3.18 below to answer the question(s) that follow. Figure 3.18Refer to Figure 3.18. The market is initially in equilibrium at Point A. If demand shifts from D1 to D2 and the price of burritos remains constant at $3.00, there will be

A. an excess demand of 150 million pounds of burritos. B. an excess supply of 150 million pounds of burritos. C. an excess demand of 100 million pounds of burritos. D. an excess supply of 50 million pounds of burritos.