In a survey of nearly 200 senior marketing managers, 71 percent responded that they found a customer satisfaction metric very useful in managing and monitoring their businesses. Here are the top six reasons why customer satisfaction is so important:
1 When the price elasticity of demand for a good is unit (or unitary) elastic (E d = 1), the percentage change in quantity is equal to that in price, so a change in price will not affect total revenue.2  When the price elasticity of demand for a good is relatively elastic d. When the price elasticity of demand for a good is relatively elastic d. 2  When the price elasticity of demand for a good is perfectly elastic (E d is â â), any increase in the price, no matter how small, will cause demand for the good to drop to zero. 3  Hence, when the price is raised, the total revenue falls to zero.
The, greater the responsiveness of quantity supplied of a commodity to the change in its price, the greater is its elasticity of supply. To be more precise, the elasticity of supply is defined as a percentage change in the quantity supplied of a product divided by the percentage change in price.Kinds of Elasticity of Supply: There are five types of elasticity of supply which are given below. (I) perfectly elastic supply:It is a case where a very slight change in price causes an Infinite change in supply. A slight fall in prices brings quantity supplied to zero.inds of Elasticity of Supply: There are five types of elasticity of supply which are given below. (I) perfectly elastic supply: It is a case where a very slight change in price causes an Infinite change in supply. A slight fall in prices brings quantity supplied to zero.