The development of CDs and DVDs,which significantly reduced the market for cassette tapes,is an example of:
A) specialization.
B) derived demand.
C) roundabout production.
D) creative destruction.

Question

Quizplus · Accepted Answer

Creative destruction refers to the process of new technologies or innovations replacing older ones in the market. In this case, CDs and DVDs replaced cassette tapes, causing a decline in the demand for cassette tapes. Therefore, the development of CDs and DVDs is an example of creative destruction.

The Development of CDs and DVDs,which Significantly Reduced the Market