An analyst, having solved a linear programming problem, determined that he had 10 more units of resource Q than previously believed. Upon modifying his program, he observed that the list of basic variables did not change, but the value of the objective function increased by $30. This means that resource's Q's shadow price was
A)$1.50.
B)$3.00.
C)$6.00.
D)$15.00.
E)$30.00.

Question

Quizplus · Accepted Answer

The shadow price represents the change in the objective function value per unit increase in the resource availability. Since the objective function increased by $30 with an additional 10 units of resource Q, the shadow price is $30 / 10 units = $3.00.

An Analyst, Having Solved a Linear Programming Problem, Determined That