There are two types of people: tall and short. You are a monopoly retailer of hi

Question

There are two types of people: tall and short. You are a monopoly retailer of high end pastas, and you notice that tall people tend to be richer and willing to pay more for pasta. Right now you charge everyone $9 a box for pasta, but you think you could increase your profits if you could somehow charge tall people more money for pasta. So you decide to put a sign on your door that tall people pay $10 for a box of pasta, and short people pay $8 a box. Ignoring any bad press or lawsuits, how might people get around your pricing scheme? Can you think of a way to price pasta differently to tall and short people without making it so obvious?

Explanation / Answer

This won't work. We can use 2 part tariff where we charge an entry fee for entering into the restaurant and then they can order whatever they want after paying for a price.

The entry fees will be equal to the willingness to pay of the short customers.

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