From the following determinants of the price elasticity of demand, indicate the correct option for the determinants having a positive relationship with the degree of the price elasticity of demand.
1. Range of substitutes of the commodity
2. Extent of the different uses of the commodity
3. Portion of the income of the buyer spent on the commodity
4. Income group of buyers purchasing the commodity
A. Both 1 and 2
B. Both 3 and 4
C. 1, 2 and 3
D. 2, 3 and 4
Answer: Option C
This Question Belongs to Management >> Managerial Economics
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