When an Increase in Price Produces a Decline in the Total

question 13

Multiple Choice

When an increase in price produces a decline in the total amount spent on a commodity,demand is said to be

• A) of absolute elasticity.
• B) income inelastic.
• C) of unitary elasticity.
• D) price inelastic.
• E) price elastic.

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Definitions:

Inclinometer

Used to make angular measurements on driveline components and drivelines; may use a liquid level, laser, or electronic operating principle.

Chassis

The base frame of a vehicle but the term is often used to describe the complete vehicle.

Friction Facings

Materials attached to the surface of clutch and brake components to enhance friction and improve the transfer of force.

Asbestos Facings

Materials containing asbestos used in some brake and clutch systems for their heat resistance properties, now largely replaced due to health risks associated with asbestos inhalation.