Proportional increases or decreases in perceived benefits as well as price or cost result in no net change in value.

Question

Quizplus · Accepted Answer

This is the principle of proportionality, which states that if both benefits and costs increase or decrease proportionally, the overall value remains constant. For example, if the price of a product increases by 10% but the benefits also increase by 10%, the overall value to the consumer remains the same.

Proportional Increases or Decreases in Perceived Benefits as Well as Price