The diagram illustrates the short-run supply curve (SSR) and long-run supply curve (SLR) for a bakery. The price of a loaf of bread rises from $2.00 to $2.20. What is the bakery’s price elasticity of supply (PES) in the short run and in the long run when the price of a loaf of bread rises?
- Along run 2.0, short run 0.5
- Blong run 1.4, short run 0.5
- Clong run 0.7, short run 2.0
- Dlong run 0.5, short run 2.0