Given below are two statements:
Statement I: The price elasticity of demand is greater, more and better substitutes are available for the commodity
Statement II: Normal goods (EI > O) for which EI > 1 are called luxuries while those normal goods for which EI is between zero and one are considered necessities
In the light of the above statements, choose the most appropriate answer from the options given below:
1
Both Statement I and Statement II are correct
2
Both Statement I and Statement II are incorrect
3
Statement I is correct but Statement II is incorrect
4
Statement I is incorrect but Statement II is correct