Bulk modulus is defined as the proportion of volumetric stress related to the volumetric strain for any material. In much simpler words, the bulk modulus is nothing but a numerical constant that is used to measure and describe the elastic properties of a solid or a fluid when pressure is applied. Bulk modulus is a property that indicates the compressibility of a fluid. With many of today's hydraulic systems operating at pressures 5000 psi and higher, ignoring bulk modulus can compromise response time of a system. Applied pressure should directly affect the action of the system rather than compress the fluid.
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