A. Entrepreneurs frequently bring new products to market, making older substitute products obsolete. Economist Joseph Schumpeter referred to this the process as . 1. Collective decision making
2. Capital formation
3. Creative destruction
b. Kristen, the president of a company that makes electronic devices, borrows a large sum of money from the local bank to purchase new, automated technology to make a new series of laptop computers. This new generation of laptops is expected to drive desktop computers out of the market. As depicted in the above scenario, which of the following is an example of creative destruction
1. The new automated technology used to create the laptops
2. Desktop computers becoming obsolete due to the introduction of this new series of laptops
3. The purchase of new technology used to make the new series of laptops