Demand for a Product Tends to Be More Elastic the Longer

question 58

Multiple Choice

Demand for a product tends to be more elastic the longer the time period considered because

• A) sellers have more time to expand production.
• B) buyers have more time to search for substitutes.
• C) price increases over time make the price larger relative to buyers' incomes.
• D) the inverse relationship between the price and the quantity demanded weakens over time.
• E) buyers get used to the new price.

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Definitions:

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.

Sun Gear

The central or axis gear in a planetary gearset. It may be optioned to rotate or not rotate, depending on the gear arrangement and desired output ratios.