Shadow price of resources corresponding to a binding constraint will not change even if the RHS corresponding to one of the binding constraints is changed, as long as the same constraints continue to be binding constraints.

Question

Quizplus · Accepted Answer

The shadow price of a resource is the rate at which the objective function will change if the right-hand side of the corresponding constraint is increased by one unit. If the right-hand side of a binding constraint is increased, the shadow price will not change as long as the same constraints continue to be binding. This is because the optimal solution will not change, and the shadow price is determined by the optimal solution.

Shadow Price of Resources Corresponding to a Binding Constraint Will