The correct answer is Option (3) → (A), (B), and (C)
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(A) Nature of Goods: This is a major factor. The elasticity of demand is greatly affected by whether a good is a necessity (like medicine or food staples, which tend to have inelastic demand) or a luxury (like a high-end car, which tends to have elastic demand).
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(B) Availability of Substitution: This is one of the most important determinants. The more close substitutes a good has, the more elastic its demand will be, as consumers can easily switch to an alternative when the price rises. Conversely, few or no close substitutes lead to inelastic demand.
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(C) Complementary Goods: The relationship to complementary goods (goods often used together, like cars and petrol) affects demand. If a good is a complement, its demand is joint with the other good. The demand for the complementary good is a factor, as the price change in one affects the demand for the other, which can impact the elasticity of the first good.
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(D) Cost of Goods: The cost of goods (the cost of production for a firm) is a factor influencing supply, not a direct determinant of the price elasticity of demand.
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