In the picture given in the riddle you will see 2 teapots A & B.
If teapot A holds 32 cups of tea, about how many cups of tea does teapot B hold?
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Answer: 16 cups tea (about half of pot A).
The amount of tea that can be kept within each pot is determined by the height of the spout opening. The tea level cannot rise above the spout opening since any extra tea would merely spill out from the spout.
Visual estimate would conclude that the spout of teapot B is approximately half the height of that of teapot A, therefore providing only half of the capacity, or 16 cups tea.
As shown in the picture below: