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.
Price elasticity of supply = Percentaje change in quantity supplied / percentaje change in price = ÎQ s /Q s / ÎP /P. Cross elasticity of supply. The cross elasticity of supply is the proportional change in the quantity supplied, relative to the proportional change in the price of another good. Cross elasticity of supply = Percentaje change in quantity supplied / percentaje change in the price of another good = ÎQ s 1 /Q s 1 / ÎP 2 /P 2