Project 3 is based on the materials from Freakonomics Radio Podcast: How Safe Is Your job?. Economists preach the gospel of creative destruction. whereby new industries - and jobs - replace the old ones. But in this era of technological wonder, has creative destruction become too destructive? 1. One of the creative destruction examples used by Stephen Dubner (the host of Freakonomics Radio Podcast) is piano business. Before the invention of phonograph. the sales of piano was $56 million in 1914. that was more than double the sales of phonographs. In 1919, five ears later, sales of record players hit $158 million. Radio soon eclipsed that. By World War 1. pianos were no longer an essential element of every living room. By 1933, two-thirds of American homes bad at least one radio. Name another creative destruction. 2. As mentioned by Stephen. it was terrible news for the people working in the piano industry. But the workers involved in the musical recording and broadcasting industries could benefit from this creative destruction So in your example in Qi, who do you think could benefit from the technological innovation. 3. There are two types of industries, labor intensive versus capital intensive. Give me some examples for each one, and which do you expect will be affected more by the creative destruction? Explain in one or two sentences. Solution Example of Capital intensive Libraries to E-Library, For Libraries it requires lots of space, Multiple copies of same book, take care of books but in case of E-Library books required in Soft forms, no requirement to have multiple copies, Ease to use. .