a) Geppetto and Lewis agree to trade at a rate of 3 puzzles for each puppet. With those terms of trade, who is most likely to be the supplier of puzzles? Who is most likely to be the supplier of puppets? b) The two toy store owners agree to specialize and to trade 30 puzzles for 10 puppets. The terms of trade are still 3 puzzles for each puppet. How many puzzles and puppets will each one have after they complete their trade? Geppetto ? puzzles and ? puppets Lewis ? puzzles and ? puppets Please explain to me how to solve these questions. Don't just give me the answers. Thank you!
a) Geppetto and Lewis agree to trade at a rate of 3 puzzles for each puppet. With those terms of trade, who is most likely to be the supplier of puzzles? Who is most likely to be the supplier of puppets? b) The two toy store owners agree to specialize and to trade 30 puzzles for 10 puppets. The terms of trade are still 3 puzzles for each puppet. How many puzzles and puppets will each one have after they complete their trade? Geppetto ? puzzles and ? puppets Lewis ? puzzles and ? puppets Please explain to me how to solve these questions. Don't just give me the answers. Thank you!
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
a) Geppetto and Lewis agree to trade at a rate of 3 puzzles for each puppet. With those terms of trade, who is most likely to be the supplier of puzzles? Who is most likely to be the supplier of puppets?
b) The two toy store owners agree to specialize and to trade 30 puzzles for 10 puppets. The terms of trade are still 3 puzzles for each puppet. How many puzzles and puppets will each one have after they complete their trade?
Geppetto ? puzzles and ? puppets
Lewis ? puzzles and ? puppets
Please explain to me how to solve these questions. Don't just give me the answers. Thank you!
Transcribed Image Text:Both Geppetto and Lewis are toy store owners. They decide that they would like to trade puzzles and puppets in order to better stock
their toy store shelves. The table below compares their production possibilities schedules.
Production Possibilities Schedules
Geppetto
Lewis
Puzzles
Puppets
Puzzles
Puppets
100
50
80
4
40
5
60
8
30
10
40
12
20
15
20
16
10
20
20
25
Instructions: Enter your answers as a whole number.
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