How own Price Elasticity of Demand is different from Income Elasticity of Demand?
Price Elasticity of Demand is a quantitative relationship between change in quantity demanded due to change in price. On the other hand, Income Elasticity of Demand is a quantitative instrument which measures the responsiveness of change in demand due to change in income of the consumer, it is calculated as:
Ey= Percentage Change in Demand/ Percentage Change in Income.
Where, Ey = Income Elasticity of Demand.