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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
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 LTr a2 Puppets | ous [ 0 a4 [ 4 | 0008 @ | o0 | s [ se [ 16 | | e | 16 [ 30 [ 32 ] | e [ 2 | e | 4 | Instructions: Enter your answers as a whole number. 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? Puzzles: |Lewis v Puppets: | Geppetto v 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? Lewis: 40| puzzles and 50| puppets Geppetto: 100 | puzzles and 30| puppets
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