distinguish between price elasticity of demand and income elasticity of demand

write a note on determinates of income elasticity of demand

1)price elasticity of demand

2)income elasticity of demand

3)cross elasticity of demand

The price elasticity refers to the change in demand due to the change in price. The income elasticity of demand on the other hand refers to the change in demand due to the change in income.

income elasticity can be applied in the intersection of market demand and supply.

when there is income inequality people with less income get to buy less goods than they would have wanted this affects the suppliers who will have to reduce their goods to be supplied.