Here is a problem to challenge your intuition. In the original Grand Prix example, reduce the capacity of plant 2 to 300. Then the total capacity is equal to the total demand. Reoptimize the model....

Here is a problem to challenge your intuition. In the original Grand Prix example, reduce the capacity of plant 2 to 300. Then the total capacity is equal to the total demand. Reoptimize the model. You should find that the optimal solution uses all capacity and exactly meets all demands with a total cost of $176,050. Now increase the capacity of plant 1 and the demand at region 2 by 1 automobile each, and optimize again. What happens to the optimal total cost? How can you explain this “more for less” paradox?