Question

1. Suppose the amount of premium leather decreases from 180 to 150 a. Does the shadow price change? Why or why not? b. If possible, determine the change in value of the objective function in this situation. c. Does the optimal solution change? Explain why or why not.

Answer 1

Answer:

Explanation: A. Shadow price has not changed because Shadow price show value of a commodity without considering final cost.

B. Change in value 180 - 150/180 X 100 = 16.7

C. The optimal solution didn't change because the product price went from it highest profit 180 to it's least cost 150

Answer 2

Answer below in an attachment