The replacement of the phonograph by the cassette tape player and the eventual replacement of the latter by CD and MP3 players is an example of
A) economies of scale.
B) planned obsolescence.
C) diseconomies of scale.
D) creative destruction.

Question

Quizplus · Accepted Answer

The replacement of technological products by newer and more efficient ones is an example of creative destruction. This phenomenon involves the constant cycle of new products replacing old ones, as the former offer better quality, lower costs or other benefits. In this case, the phonograph, cassette tape player, CD, and MP3 players were all developed to meet the changing demands of consumers for better sound quality, easier portability, and greater storage capacity, among other features. As such, the earlier products became obsolete and were phased out, giving rise to newer and more advanced ones.

The Replacement of the Phonograph by the Cassette Tape Player