Explanation:

- The Lorenz Curve is a graphical representation. It depicts the distribution of income or wealth within an economy.

- It plots the cumulative percentage of total income received against the cumulative number of recipients, starting with the poorest.

- A perfectly equal income distribution is represented by a 45-degree line. The more the Lorenz Curve bows away from this line, the more inequality there is.

- Option 1: Relationship between the price of a certain commodity and its demand is studied using demand curves, not the Lorenz Curve.

- Option 2: The rate of employment refers to the percentage of the labor force that is employed and is analyzed using employment reports, not the Lorenz Curve.

- Option 3: Taxable income elasticity measures how changes in taxation affect taxable income, not directly linked to the Lorenz Curve.

- Option 4: Income distribution is correctly indicated by the Lorenz Curve’s graphical plot.

- Your choice of option 4: Income distribution is correct.