A company raises its product price from \$30 to \$35, causing quantity demanded to drop from 600 units to 500 units. Which effect is greater, price effect or quantity effect?

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

Answer: (B)