Consider below the linear programming problem:

Max 3A+2B

s.t.

1A+1B10

3A+1B24

1A+2B16

A,B0

The value of the optimal solution is 27. Suppose that the right-hand side for consraint1 is increased from 10 to 11.

a. Use the graphical solution procedure to find the new optimal solution. (1 mark)

b. Use the solution to part (a) to determine the shadow price for constraint 1. (1 mark)

c. The sensitivity analysis for the linear program in this problem provides the following right-hand side range information:

Constraint

Constraint R.H. side

Allowable increase

Allowable decrease

1

10

1.20

2

2

24

6

6

3

16

Infinite

3

What does the right-hand side range information for constraint 1 tell you about the shadow price for constraint 1? (1 mark)