Suppose the price of bagels in Allentown is currently $0.75 per bagel. There are 10 low-cost bakeries that can produce bagels, with the following aggregate supply functions

Q^S =200P100

There are 10 high-cost bakeries that can produce bagels, with the following aggregate supply functions

Q^S =200P200

1. Which bakerieswill be active when the price is $0.75?

a. only high cost bakeries will be active

b. only low cost bakeries will be active

c. both high and low cost bakeries will be active

2.

A) If the price rises to $1.25, what will be the market supply in the short run?

B) What will be the market supply in the long run?