7 Everyday Pricing Puzzles and Answers

1. Charging for sharing food

   A restaurant in Palo Alto charges $2 to split pasta and $3 to split an entree, because _____ (Hint: not costs)

   — Rags Srinivasan (@rags) April 7, 2012

   Answer

2. Pricing train ticket for Pigs and Sheep

   In 1831, in Liverpool-Manchester railway, it cost an Irish farmer 7.5p to transport a pig but only half of it for a sheep, because ______?

   — Rags Srinivasan (@rags) April 7, 2012

   Answer

3. Pricing entry fee for children in children’s museums

   Why do Children's Museums charge lower price for children when they are the ones having most fun? _______ (Hint: who is the real customer?)

   — Rags Srinivasan (@rags) April 7, 2012

   Answer

4. Corkage fee in restaurants

   Restaurants charge $15-$25 corkage even though the marginal cost of providing wine glasses is 0, because _____

   — Rags Srinivasan (@rags) April 7, 2012

   Answer

5. Same product different prices in different stores

   Lactaid milk is priced at $3.39 at Target but $3.99 at Trader Joe's (a block away) because ______

   — Rags Srinivasan (@rags) April 7, 2012

   Answer

6. Pricing iPad 3G vs. Kindle 3G

   iPad 4G costs $129 more than iPad Wifi but Kindle 3G costs only $50 more than Kindle Wifi, because ______ (Hint: don't focus on 3G vs.4G)

   — Rags Srinivasan (@rags) April 7, 2012

   Answer

7. Pricing blessings

   Hindu Temple at East Bay charges flat fee of $25 to bless a Lexus or a Corolla. Right or wrong? ____

   — Rags Srinivasan (@rags) April 8, 2012

   Answer

Bonus puzzle – Why do healthy food options cost more than sugary alternatives?