The following diagram shows the consumer and producer surplus in the market for bread. Consider changes in the elasticities of the demand and supply curves. Assuming that the market equilibrium output and price are unchanged, which of the following statements is correct? 4.5 4.0 3.5 - Supply Price P (E) 3.0 - Consumer (marginal cost) 2.5 - surplus 2.0 + - 15- Producer surplus 10 - 0.5 Demand 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 Quantity Q: number of loaves a. A less elastic supply curve will lead to a larger producer surplus. b. A more elastic demand curve will lead to a smaller producer surplus. C. A less elastic demand curve will lead to a smaller consumer surplus. d. Consumer and producer surplus do not depend on the elasticities of the demand and supply curves