We establish a variational inequality formulation that captures the transonicshock for a steady compressible potential flow. Its critical point satisfiesthe transonic equation; moreover the associated jump conditions across its freeboundary match the usual Rankine-Hugoniot jump conditions for a shock. By meansof example we validate our formulation, and establish the necessary andsufficient condition for the existence of a transonic shock. Numerical resultsare also discussed.
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