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.
1.The price elasticity of demand is: a) the ratio of the percentage change in quantity demanded to the percentage change in price. b) the responsiveness of revenue to a change in quantity. c) the ratio of the change in quantity demanded divided by the change in price. d) the response of revenue to a change in price.2.If demand is price elastic, then: a) a rise in price will raise total revenue. b) a fall in price will raise total revenue. c) a fall in price will lower the quantity demanded.. Suppose we know that the price elasticity of demand of good X is equal to -1.2. Then, if its price will increase by 5%, we can predict with certainty that. a) quantity demanded of that good will increase.