Lecture 02 03 Linear Programming Sensitivity Analysis Changes in Objective Function

Let me add more explanation to 11:39, what happens when you make more profit from $120 to $150 for receiver product? The answer is that the isoprofit line will become more gradual than before. The reason is that now 1 speaker can be made up by more number of speakers. Before the increase it was 120/50, which is 2.4. It took 2.4 speakers to make up for 1 receiver. Now after the increase, the ratio changes to 150/50, which is 3. It takes 3 speakers to make up for 1 receiver. There the slope becomes more gradual than before.