11 In Problem 10, suppose we increase si to 16 and d3 to 11. The problem is still balanced, and because 31 units

(instead of 30 units) must be shipped, one would think that the total shipping costs would be increased. Show that the total shipping cost has actually decreased by $2, however.

This is called the “more for less” paradox. Explain why increasing both the supply and the demand has decreased cost. Using the theory of shadow prices, explain how one could have predicted that increasing s1 and d3 by 1 would decrease total cost by $2.