Technological change can lead to the development of new products, new markets and may destroy existing markets
New technology can create products and entire markets that never existed before. It can also wipe out existing markets by making older products or services obsolete.
Real World
Netflix's rise in streaming didn't just improve video rental — it destroyed Blockbuster's entire business model, wiping out a market worth billions almost overnight.
Exam Focus
When asked to 'evaluate', always weigh both creation and destruction of markets — examiners reward balanced analysis.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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