Suppose the price elasticity of demand for cigarettes is -0.4. The FDA decides to regulate tobacco production, which increases the price of cigarettes and causes the quantity of cigarettes demanded to decrease by 25 percent

What is the percentage increase in price which would lead to the 25 percent decrease in quantity demanded? If the price elasticity was -4, what would be the percentage increase in price?

If price elasticity of demand is -0.4, a 25 percent decrease in quantity demanded would result from a 62.5 increase in price.
If price elasticity of demand is -4, a 25 percent decrease in quantity demanded would result from a 6.25 increase in price.