The process of new products and new firms replacing existing products and firms is called:
A)transformational innovation.
B)technological development.
C)price skimming.
D)consumer sovereignty.
E)creative destruction.

Question

Quizplus · Accepted Answer

The process of new products and new firms replacing existing products and firms is known as creative destruction, as coined by economist Joseph Schumpeter. This process brings innovation, growth, and progress but also leads to the decline of old and established firms and products. It involves the introduction of new technologies, products, and services that disrupt the existing market and change the way things are done. This process is essential for the long-term growth and sustainability of the economy.

The Process of New Products and New Firms Replacing Existing