A(n) ________ creates a gap between the price customers pay and the price producers receive.
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substitution effect
The ________ is defined as a change in the quantity demanded as a good that has become relatively cheaper is substituted for a good that has become relatively more expensive.
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midpoint method
The ________ replaces the usual definition of the percent change in a variable, X, with a slightly different definition as associated with the following formula:
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Elasticity
________ is a term used by economists to describe how responsive one variable is to changes in another.
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% change
________ in x= change in x /average value of x times 100.
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Demand
________ for income- elastic items rises faster than income when income rises.
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