The correct answer is B) False.
When the price elasticity of demand is less than 1, which in this case is 0.2, it indicates that demand is inelastic. This means that consumers are not very sensitive to price changes. As a result, if the price increases, the percentage decrease in quantity demanded will be smaller than the percentage increase in price.
In such a scenario, total revenue—which is calculated as price multiplied by quantity demanded—will actually increase when the price goes up because the loss in quantity demanded is outweighed by the gain in price. Therefore, with an elasticity of 0.2, an increase in price will lead to an increase in total revenue, making the statement false.