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Is anyone able to explain the relation, or perhaps the difference between torque and response?
From what i understand, torque is greater with a greater rotating mass and greater response comes from a lesser rotating mass. But is one going to get you up and moving faster than the other? Would torque also affect wheel spin more than response would or am i looking into it too far?
I think you're confusing torque with inertia possibly. Torque in simple terms is the twisting force being produced at the crankshaft. It's a result of the engine's mechanical design and is affected by how much air we can get into the cylinders. the torque is not affected by the rotating mass.
Response on the other hand is a little more subjective. Given the way you're discussing these terms I think you're talking about the ability for the engine to accelerate or decelerate which is affected by the rotating mass of the internal engine components and the flywheel. Less mass will allow the engine to accelerate faster. This isn't something that you'll measure as an increase in power or torque on a dyno.