Ratios and Proportions are a common application used to think about financial choices and situations. When thinking about financial choices, we often consider trade-offs and ratios and proportions offer a great way to model those trade-offs exactly. Bartering is a particularly good application of this concept.
Highlighted Problem: Bartering for Bananas
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Byron lives where the people trade goods they produce for other things they need. He has some fish that he has caught, and he wants to trade them for as many bananas as he can. He asks around to find out what is being traded and finds out the following:
- Five fish are worth the same as two loaves of bread.
- Six oranges are worth the same as two melons.
- One loaf of bread is worth the same as one banana plus three oranges.
- Four loaves of bread are worth the same as fourteen oranges