Learning Contents:                                                              ·          Difference between Price Elasticity and Income Elasticity of Demand   Basis of Difference     Price Elasticity of Demand   Income Elasticity of Demand   Meaning It is the ratio of the percentage change in quantity demanded to the percentage change in the price of the commodity. It is the ratio of the percentage change in quantity demanded to the percentage change in the income of the consumer. Sensitivity It measures the demand’s sensitivity to change in price. It measures the demand’s sensitivity to change in income. Nature of Relationship The relationship between quantity demanded and the price is always negative or inverse. In other words, the Price elasticity of demand is always negative. The relationship between quantity demanded and income is