Final answer:
The price elasticity of demand for pizza delivery in this town is relatively high and demand is elastic.
Step-by-step explanation:
The statement "The pizza delivery business in this town is very competitive. I’d lose half my customers if I raised the price by as little as 10%" suggests that the price elasticity of demand for pizza delivery in this town is relatively high and demand is elastic.
Elastic demand means that a small change in price leads to a proportionally larger change in quantity demanded. In this case, a 10% price increase would result in a 50% decrease in the number of customers, indicating that customers are very responsive to changes in price.
In such a competitive market, it would be wise to keep the price the same or even consider lowering the price to attract more customers and maximize revenue.