If the Government Increases the Excise Tax on Cigarettes by 10%,which

Multiple Choice

If the government increases the excise tax on cigarettes by 10%,which of the following statements is correct?

A) The government's tax revenue will fall since the demand for cigarettes is inelastic.
B) The quantity demanded of cigarettes will fall by more than 10% because the demand is inelastic.
C) Both the quantity demanded and supplied of cigarettes will fall by more than 10% because the demand is inelastic.
D) Since the demand for cigarettes is highly inelastic,the subsequent increase in price will be greater than the decrease in quantity demanded.