If the Demand for Flashlights Is Highly Inelastic, This Indicates

question 131

Multiple Choice

If the demand for flashlights is highly inelastic, this indicates that

• A) higher flashlight prices will increase the demand for flashlights.
• B) the price elasticity of demand for flashlights is greater than 1.
• C) the price elasticity of demand for flashlights equals 1.
• D) the quantity of flashlights purchased by consumers is not very responsive to a change in the price of flashlights.

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Definitions:

Hydromechanical Transmission

A type of transmission that combines hydraulic and mechanical systems to transfer power from the engine to the wheels of a vehicle.

Oil Pump

A component in an engine that circulates oil under pressure to the rotating bearings, sliding pistons, and camshaft of the engine to lubricate the parts.

Torque Converter

A fluid coupling used to transfer rotating power from an engine to the transmission in vehicles.

Planetary Gearset

A complex system of gears that includes a central sun gear, multiple planet gears, and an outer ring gear, used in many automatic transmissions.