The baking industry in Jamaica is very large. Several firms are involved in production, importation and retail of baked goods which includes loaves of bread, cakes, pastries, cookies and crackers. Johnsons Bakery, located in St Ann, specialises in cheesecakes. It also differentiates its products by offering low prices, discounts for children and the elderly as well as volume discounts for customers who purchase in bulk. In addition, Johnsons Bakery advertises itself as having the best quality, most convenient service and even the best package in the parish. Susan, one of Johnsons satisfied customers, purchases a slice of cheesecake for $500 and a soda for $100 every day. Johnsons desire is to keep his price low, but he has no choice but to increase the price of cheesecake by $100 to help offset the rising cost of raw materials, transportation, electricity and labour. A Identify FOUR (4) characteristics of the type of market structure that is associated with the bakery industry. (4 marks) B. What are the TWO (2) types of price discrimination practised by Johnsons Bakery? (4 marks) C.Outline TWO (2) advantages and TWO (2) disadvantages of Johnsons Bakerys use of product differentiation and advertising as strategies. (4 marks) D. Use the price elasticity of demand theory to evaluate THREE (3) possible outcomes Johnsons Bakery might face if it increases the prices of its products. (8 marks) (Total 20 marks)