Economics (AS & A Level) · May / June 2025 · Paper 12 · Question 8

The diagram shows the short-run supply curve (S_SR) and long-run supply curve (S_LR) for a bakery. The price of a loaf of bread increases 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 increases?

1. Ashort run 0.5, long run 2.0
2. Bshort run 0.5, long run 1.4
3. Cshort run 2.0, long run 0.7
4. Dshort run 2.0, long run 0.5

As printed in the paper