Consider the following statements:
1. Demand for a given commodity varies directly with the price of a substitute good.
2. A complementary good or service is an item used in conjunction with another good or service.
3. Inferior Good refers to an item that becomes less desirable as the incomes of its consumers increase.
4. Inferior goods are those whose price elasticity is positive.
Which of the above statements are correct?
1
2 and 4 only
2
2, 3, and 4 only
3
1, 2, and 3 only
4
1, 2, 3, and 4
5
Question Not Attempted