Whether throwing the ball makes A move a little westward or not doesn't really mater. The energy of the collision between the ball and person B is consistent because they're closing in on each other at 20 m/s. Whether you think that person A was moving towards person B before the throw or the reverse doesn't make any difference.
This is not so simple, yes, the speed delta is the same, but the kinetic energy is not, because it is a square dependence on speed. I had a discussion about this same problem about a year ago, albeit slightly differently phrased: say an observer B on a train is traveling at 10 m/s relative to some observer A. How much energy does he need to give to a 1kg ball to give it a speed of 10 m/s relative to himself B in the same direction the train is traveling?
The answer for B is 1*10^2 - 0 = 100J.
Now consider A, he also measures speed delta of 10m/s, but it is from 10 to 20, and he notices that B has given the ball 1*20^2 - 1*10^2 = 300J, 3x more (this is what I meant that speed delta is the same for both observers, but kinetic energy delta is not).
So how much extra energy did the ball get, 100J or 300J?
KZ0 said:
So by conserving total momentum as well, the energy will level out?
If I understand you correctly, from A's reference:
Throwing the ball makes him move a little westwards, meaning throw requires more work, and B receiving the ball makes him loose speed westwards, removing a little energy, that could even out the apparent difference?
That's exactly why, to conserve momentum, B (or in the above case something on the train or the train itself) had to lose a bit of speed and this will account for that extra 200J that the ball got from seemingly nowhere. I worked it out with momentum conservation taken into account, and everything is ok.
This is actually a known effect, and has a name: Oberth Effect.
http://en.wikipedia.org/wiki/Oberth_effect
In the page they discuss rockets and why they get more boost from the fuel at certain velocities than others. Quote from there:
"It may seem that the rocket is getting energy for free, which would violate conservation of energy. However, any gain to the rocket's energy is balanced by an equal decrease in the energy the exhaust is left with."