The marketing department of Hershey's estimated the following elasticities for "Hershey's Kisses" product:

Price elasticity of demand =2.0

Income elasticity of demand=1.273

Assume that the supply of Hershey's is elastic.

Based on the above explain (and justify your explanation) if the following is true or false:

a.) A 10% increase in the price of Hershey's will reduce the quantity demanded by 20%.

b.) An increase in consumer's income will increase the price and quantity of Hershey's sold.

c.) Since price elasticity of demand is greater than 1 the total revenue from reduction in price will go down.