A company raises its product price from \$25 to \$30, causing quantity demanded to drop from 800 units to 600 units. Which effect is greater, price effect or quantity effect?

• A. Neither effect is significant, as total revenue is unaffected.
• B. Both effects are equal, as total revenue remains unchanged.
• C. Price effect is greater, as total revenue increases.
• D. Quantity effect is greater, as total revenue decreases.

Answer: (D)