If the Price Elasticity of Demand for Tobacco Is 0

Multiple Choice

If the price elasticity of demand for tobacco is 0.5 and the income elasticity of demand for tobacco is 0.4:

A) an increase in the price of tobacco will decrease total revenue from sales of tobacco.
B) a 20% increase in the price of tobacco will decrease the quantity demanded of tobacco by 8%.
C) tobacco is an inferior good.
D) a 50% increase in income will increase the quantity demanded of tobacco by 20%.