In the peak-load pricing model, the demand functions have positive and negative coefficients of prices. The negative
Question:
a. Increase the magnitudes of the negative coefficients from -0.5 and -1 to -0.7 and -1.2, and rerun Solver. Are the changes in the optimal solution intuitive? Explain.
b. Increase the magnitudes of the positive coefficients from 0.1 and 0.1 to 0.3 and 0.3, and rerun Solver. Are the changes in the optimal solution intuitive? Explain.
c. Make the changes in parts a and b simultaneously and rerun Solver. What happens now?
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Related Book For
Data Analysis and Decision Making
ISBN: 978-0538476126
4th edition
Authors: Christian Albright, Wayne Winston, Christopher Zappe
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