Elasticity of Demand and Market Structure

Janet Gordon and Phil Hopkins graduated several years ago with M.S. degrees in accounting and set up a full-service accounting firm. Janet and Phil have many small business clients and have noticed some pricing trends while compiling annual financial statements. The following data are for five of the pizza parlors that are Janet and Phil?s clients.

Required:

1.Is the demand for pizza relatively more elastic or inelastic? - Select your answer -ElasticInelasticItem 1

2.What type of market structure characterizes the pizza industry? - Select your answer -MonopolyOligopolyMonopolistic competitionPerfect competitionItem 2