A Negative Dual Price for a Constraint in a Minimization

question 16

Multiple Choice

A negative dual price for a constraint in a minimization problem means

• A)as the right-hand side increases,the objective function value will increase.
• B)as the right-hand side decreases,the objective function value will increase.
• C)as the right-hand side increases,the objective function value will decrease.
• D)as the right-hand side decreases,the objective function value will decrease.

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Definitions:

Own Price Elasticity

A measure of the responsiveness of the quantity demanded of a good to a change in its own price.

Specific Tax

A tax that is levied as a fixed amount per unit of a good or service, rather than as a percentage of the price.

Price Elasticity

Measures the responsiveness of the quantity demanded of a good to a change in its price.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually do pay.