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.
Varun. Advertisements: Elasticity of supply of a commodity is the degree of responsiveness of the quantity supplies to changes in price. Like the elasticity of demand, the elasticity of supply is the relative measure of the responsiveness of quantity supplied of a commodity to a change in its price.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.