In the music industry, cassette tapes were replaced by compact discs, which in turn were replaced by the iPod and MP3 technology. This process would be an example of
A)the inverted-U theory.
B)creative destruction.
C)diminishing marginal utility.
D)the law of diminishing returns.

Question

Quizplus · Accepted Answer

Creative destruction refers to the process where new innovations lead to the demise of older technologies. In this case, the introduction of compact discs, followed by the iPod and MP3 technology, which replaced cassette tapes, is a classic example of creative destruction, where newer technologies replace older ones, leading to progress in the industry.

In the Music Industry, Cassette Tapes Were Replaced by Compact