We now conclude that
is a sensitive parameter because making small change in its value (adding
1 in this case) changes the optimal solution. It also changes the value
of
(
increasd from 70 to 80), as indicated by the nonzero value of the shadow
price corresponding to .
The shadow prices give the marginal values of the resources. Thus, since
the shadow price for resource 2 is 10, for each (small) increase or decrease
in the amount of resource 2 made available (the value of ),
will change by the shadow price times that amount (10 times the change
in ). |