A shadow price tells how much a decision variable can be increased or decreased without changing the value of the solution.

Question

Quizplus · Accepted Answer

A shadow price actually tells us how much the objective function's value will change if the right-hand side of a constraint is increased by one unit, assuming all else remains constant. It does not directly indicate how much a decision variable can be increased or decreased without changing the solution's value.

A Shadow Price Tells How Much a Decision Variable Can