It’s about elasticity of supply versus demand. If the supply shock reduces supply by 10% and prices increase by 11% then revenue would be unchanged. But if cons

It’s about elasticity of supply versus demand. If the supply shock reduces supply by 10% and prices increase by 11% then revenue would be unchanged. But if consumers don’t substitute in the face of that 11% increase then prices will continue to climb, increasing profits to more than they were before the shock.