When files or folders are compressed, they take up less storage space

The answer is: right.

Yes, when files or folders are compressed, they take up less storage space. Compressing files and folders is an important process that helps reduce the amount of memory or storage space occupied on your computer. This is done using algorithms that compress the size of the file or folder, making it take up less storage space on your computer's hard drive. The compressed file is smaller than its original version and can be easily transferred from one computer to another. Decompressing the file requires special software that can restore the file to its original size. By compressing files and folders, users can free up valuable storage space on their computers.