Final answer:
When the formula V=Q/P is used for value analysis and the price (P) increases without a change in quality (Q), the value analysis (VA) will most likely decrease, as consumers receive less value for each dollar spent.
Step-by-step explanation:
The formula for determining value analysis is V=Q/P; where P equals price, V equals value, and Q equals quality. If the price (P) increases and there is no change in quality (Q), then the value analysis (VA) will most likely decrease. This is because value is calculated as the ratio of quality to price. As price goes up without a corresponding increase in quality, the value received for each dollar spent goes down, meaning consumers get less value for their money.
For example, if we consider the elasticity of demand, as we move along the demand curve and the price increases, the percentage change in price has gone up while the percentage change in quantity demanded remains unchanged. This leads to a decrease in the value obtained from the product because consumers are paying more without receiving any additional quality.