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Income elasticity of demand refers to a​ ________ the demand curve in response to changes in​ income, whereas price elasticity of demand refers to a​ ________ the demand curve in response to price changes.

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Answer:income elasticity: Change in the demand curve in response to change in income

Price elasticity: change in demand curve in response to change in price

Step-by-step explanation:

Income elasticity of demand is the degree of responsiveness of the quantity demanded of a commodity to a CHANGE in income.

Income elasticity of demand=%∆ Qd / %∆income

That is, the ratio of the percentage change in quantity demanded to the percentage change in income.

Price elasticity of demand is the degree of responsiveness of the quantity demand of a commodity to a CHANGE in its own price. It can be calculated using

Price elasticity of demand= %∆Qd / %∆price

That is, the ratio of the percentage change in quantity demanded to the percentage change in price.

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