When an entrepreneur introduces a new improved product that is highly valued relative to cost
A) consumers will be worse off.
B) the demand for the products that are good substitutes for the new product will increase.
C) some of the existing products will become obsolete and businesses producing those products will fail.
D) total employment will decline if there are business failures.

Question

Quizplus · Accepted Answer

When a new improved product is introduced, it can make existing products obsolete, leading to business failures for those producing the outdated products.

When an Entrepreneur Introduces a New Improved Product That Is