roblem 03-1 1' (Afgo) avenue at a major cellular telephone manufacturer was $2.1 billion for the nine months ending March 2, up 89 percent over venues for the same period last year. Management attributes the increase in revenues to a 125 percent increase in shipments, spite a 34 percent drop in the average blended selling price of its line of phones. iven this information, is it surprising that the company's revenue increased when it decreased the average selling price of its tones? Yes. Own price elasticity is 43.27, which means demand is inelasn'c and a decrease in price will decrease revenues. No. Own price elasticity is 3.68, which means demand is elastic and a decrease in price will raise revenues. No. Own price elasticity is -U.27, which means demand is elastic and a decrease in price will raise revenues. Yes. Own price elasticity is -3.68, which means demand is elastic and a decrease in price will decrease revenues