​Use a Graph to Illustrate Why a Change in an Objective

question 52

Essay

​Use a graph to illustrate why a change in an objective function coefficient does not necessarily lead to a change in
the optimal values of the decision variables, but a change in the right-hand sides of a binding constraint does lead to
new values.

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Definitions:

Peerless Case

The Peerless case, formally known as Raffles v Wichelhaus, is a leading English contract law case that established the doctrine of mutual mistake when both parties of a contract are mistaken about an essential term of the contract.

Scienter Misrepresentation

A false representation made knowingly, without belief in its truth, or recklessly without caring whether it is true or false.

Unilateral Mistake

An error made by one party during the formation of a contract that may affect the enforceability or terms of the agreement.

Mistake Of Fact

A misunderstanding of a fact that is material to a contract, which can render the agreement voidable if the mistake is mutual between both parties.