Question

Nettie can produce 8 cupcakes or 4 hamburgers in an hour. becky can produce 4 cupcakes or 8 hamburgers in an hour. they each can only perform one activity. assume the terms of trade are 1 cupcake for 1 hamburger. if nettie consumes 4 hamburgers and becky consumes 4 cupcakes, then nettie consumes _______ cupcakes and becky consumes _______ hamburgers after the trade takes place.

Answer 1

The correct answers are four and four (4,4).

Why? Since Nettie was able to produce 8 cupcakes and 4 hamburgers within an hour, which gives her 8 cupcakes and 4 hamburgers available for trading while Becky was able to produce 4 cupcakes and 8 hamburgers in an hour. When they traded each other for a certain food its value will be equal to the opposite food, like 1 hamburger is equivalent to 1 cupcake, Nettie consumed 4 hamburgers, while Becky consumed 4 cupcakes, which is why they both consumed 4 pieces of food each after their trade.