Given that shipments Increased to 122% , hence, Quantity increased by 122% and price Decreased by 38% . So, Price elasticity= percentage change in quantity demanded/% change in price Price elasticity= ( Negative sign indicates a decrease in price) Price elasticity of demand=-3.21 Here, as percentage change in quantity demanded (122%) is more than percentage change in price (38%), demand is ELASTIC. As such, a given percentage Decrease in price lead to a greater percentage increase in demand. As such, Increase in demand has offset Decrease in price and hence, TOTAL REVENUE HAS INCREASED. Hence,it is not surprising that company's revenue Increased because when demand is ELASTIC,then a decrease in price leads to an INCREASE in total revenue