Recent content by trainwreck

I spoke with someone else, and the way he is interpreting the question is exactly how you said A:B = 2:1 since A is twice as big as B, and B costs $10, A must cost $20. Thanks everyone! I was just interpreting it differently. :)

Opportunity cost is defined as what you forego when you choose to buy A instead of B. So if A costs $4 and B costs $2 and you buy one unit of A, you forego to buy two units of B. So the relative price of fruit to vegetables is 2, the absolute price of vegetables is $10. What is the price of...

Why are you adding the 1 in the numerator though? Couldn't it also be placed in the denominator? Ohhhhhhhh I am confused. Thanks :D

So if A:B = 2:1, that means that A is cheaper than B. The way I am thinking is that for every unit of B, you can buy 2 units of A. Does this make sense? This is confusing; thanks for helping out. :) B=$10; A=$5

The relative price of fruit to vegetables is 2, the absolute price of vegetables is $10. What is the price of fruit? The way I interpret this is that one can buy two units of fruit per one unit of vegetable. Therefore the price of fruit must be $5? Is this how you see it too? The term...

If the relative price of A to B is 2, and the absolute price of B is $10, what is the price of A? Is it $5? I am assuming 5 dollars, for you can buy 2 As per 1 B, right? This is dirt easy, but I am an exchange student and the language used is simply confusing me. Would appreciate your...