IMC both option 2 and 3 would be correct. Disposable items such as wands and scrolls are available at Ye Olde Wand Shop, but permanent items have no natural market. They are very hard to come by.
I think an interesting twist on this poll would be the prevalence of magical spellcasting services. Spells without pricey material components are basicly free to create, only costing the Wizard's time. This is a pure service industry play. Some serivce providers (like good lawyers and consultants) charge top dollar, while others (street sweepers) command minimum wage.
I know it takes the fantasy out of D&D to think this way a bit, but its helpful to realize that Priests would probably have a holy edict to cast every spell in their repetoire every day for the benefit of the faithful and for "outreach" work. It doesn't cost the priests anything to cast the spells, and it brings in the faithful on Sunday, adding to their deity's power and influence.
Sorcerers have absolutely no up-front costs, since they have no spell books and do no research. A Sorcerer who can cast Fly might as well cast it every day, and could propably command a good price for it every day. The same goes for simple spells too that most people find useful. It might be cheaper to hire a maid to clean your house than to hire a Sorcerer to cast Unseen Servant, but I can see a wealthy Noble house hiring the Sorcerer a couple times a year to dust the crystal chandeliers 100 feet overhead without having to lower them.
This is assuming that spell-casting isn't a government monopoly of course.