Enter the value of objective function with one more unit ($) and the value of original objective function ($) into the Shadow Price Calculator. The calculator will evaluate and display the Shadow Price.

The following formula is used to calculate the Shadow Price.

SP = V(f+1) - V(f)
• Where SP is the Shadow Price ($) • Vf(f+1) is the value of objective function with one more unit ($)
• V(f) is the value of original objective function ($) To calculate the shadow price, subtract the value of the original objective function from the value of the objective function with one more unit. ## How to Calculate Shadow Price? The following example problems outline how to calculate Shadow Price. Example Problem #1: 1. First, determine the value of objective function with one more unit ($).
1. The value of objective function with one more unit ($) is given as: 450. 2. Next, determine the value of original objective function ($).
1. The value of original objective function ($) is provided as: 50. 3. Finally, calculate the Shadow Price using the equation above: SP = V(f+1) – V(f) The values given above are inserted into the equation below: SP = 450 – 50 = 400.00 ($)

Example Problem #2:

For this problem, the variables needed are provided below:

value of objective function with one more unit ($) = 3020 value of original objective function ($) = 93

This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer.

SP = V(f+1) – V(f) = ?