Explain the difference between income elasticity and cross elasticity of demand.

Income elasticity of demand (YED) is an economic metric that measures the sensitivity of the demand for a good or service when there is fluctuation in the income of consumers. On the other hand, cross elasticity of demand (XED) measures the sensitivity of the demand for a good or service when the price of another good or service fluctuates. Therefore, the main difference between income elasticity of demand and cross elasticity of demand is de variable that changes and impacts the demand for a good.