The Increase in the Objective Function Value That Results from a One-Unit

question 71

Multiple Choice

The increase in the objective function value that results from a one-unit increase in the right-hand side of that constraint is called

• A) surplus.
• B) shadow price.
• C) slack.
• D) dual price.
• E) None of the above

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Definitions:

Upward Sloping

A term that describes a line or curve on a graph that shows an increase in a variable in relation to another variable as you move from left to right.

Inverse Relationship

An inverse relationship is a situation in which two variables move in opposite directions; as one increases, the other decreases.

Interest Rates

The percentage of a sum of money charged for its use, typically expressed on an annual basis.

Stock Prices

Stock prices represent the current market value per share of a company's stock, reflecting investor sentiment and market conditions.