If the right-hand-side value of a binding constraint is increased by one unit, then the objective function will change in an amount equal to the shadow price.

Question

Quizplus · Accepted Answer

The shadow price represents the rate of improvement in the objective function value for a one-unit increase in the right-hand-side value of a binding constraint, assuming all else remains constant.

If the Right-Hand-Side Value of a Binding Constraint Is Increased