In a small town, there are two bakeries that produce similar types of bread. Bakery A has been in business for several decades and has a loyal customer base. Bakery B is a new entrant in the market, offering similar quality but at slightly lower prices. As a result, some customers have started shifting their purchases to Bakery B. Question: How does the concept of price elasticity of demand apply to the situation between Bakery A and Bakery B, and what factors might influence consumers' decisions to switch their bread purchases?

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