**Definition:**In the context of a maximization problem with a constraint, the shadow price on the constrain is the amount that the objective function of the maximization would increase by if the constraint were relaxed by one unit.

The value of a Lagrangian multiplier is a shadow price.

This is a striking and useful fact, but takes some practice to understand.

**Terms related to Shadow Price:**
*None*

**About.Com Resources on Shadow Price:**
*None*

**Writing a Term Paper? Here are a few starting points for research on Shadow Price:**

**Books on Shadow Price:**
*None*

**Journal Articles on Shadow Price:**
*None*