In the peak-load pricing model, we assumed that the capacity level is a decision variable. Assume now

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In the peak-load pricing model, we assumed that the capacity level is a decision variable. Assume now that capacity has already been set at 30 kwh. Change the model appropriately and run Solver. Then use SolverTable to see how sensitive the optimal solution is to the capacity level, letting it vary over some relevant range. Does it appear that the optimal prices will be set so that demand is always equal to capacity for at least one of the two periods of the day?

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Data Analysis and Decision Making

ISBN: 978-0538476126

4th edition

Authors: Christian Albright, Wayne Winston, Christopher Zappe

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