Constraint is increased more than the allowable increase

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Question

The constraint that the volume of TVs shipped out of drop point 1 equals 200 (thousand poinds) is binding, and has a non-zero shadow price. You should see an allowable increase and an allowable decrease for this constraint shadow price. What do you conjecture will happen to the shadow price if the right hand side of the constraint is increased more than the allowable increase? Would the shadow price become smaller than the current value or larger than the current value?

Reference no: EM134046410

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