The diameter of a pizza is not its size
By MUNGAI KIHANYA
The Sunday Nation
Nairobi,
19 August 2012
Charity Muli is concerned about the price she pays for pizza. She
writes: “My favourite pizza restaurant offers three sizes – small
(19cm), medium (23cm) and large (30cm). The small one costs Sh390, the
medium is Sh650 and the large is Sh880. I worked out the price per
centimetre and found Sh25 for the small one, Sh28 for the medium and
Sh29 for the large.
“This is the opposite of what I expected – the unit price of the large
should be the lowest. Can you explain why the pricing appears to be
different from normal business practice?”
Charity; your calculations and expectations are correct but your
conclusion is not! It is true that normally, businesses give better
price per unit when one buys the larger size of a product. But what
exactly do we mean by “size” in the case of a pizza?
Pizzas usually come in the form of a circular disc and the dimensions
given by the restaurant are the diameters. The “size” in this case is
not simply the diameter. It is the surface area.
Even though the bigger the diameter, the bigger the area; the two
quantities are not directly proportional to one another. Suppose for
example, that the pizza was square in shape with sides measuring 10cm
each. The area would be 100 square centimetres (10cm x 10cm). What if
the lengths were doubled to 20cm each; would the area also double? Of
course not: 20cm x 20cm is 400sq.cm – four times that of the first one!
In the case of a circle, the area is given by the square of the radius
(distance from the centre to the edge) multiplied by pi (3.14). But the
dimensions given are diameters; that is the total width of the pizza.
This is double the radius thus to get the corresponding area, we must
first divide the figures by two; then square the result; and finally
multiply by pi.
It turns out that the small pizza is 283 square centimetres, the medium
is 415sq.cm and the large is 707sq.cm. We now use these areas to compare
the prices of the pizzas per unit.
These come to about Sh1.40 per sq.cm for the small size, Sh1.60 per
sq.cm for the medium and Sh1.25 per sq.cm for the large one. It still
doesn’t follow the “normal business practice” perfectly. The medium size
turns out to be the most expensive; but, at least, the largest one is
also the cheapest to buy.
That, however, shouldn’t be cause for concern. We should not rush to
complain that the restaurant is unfair. The way I see it is that this is
a result of market dynamics – the effect of demand on prices. I suspect
that the demand for medium pizzas is far greater than that of the other
sizes. Thus the restaurant has seen an opportunity to recover some of
the discount given on the large one. It’s nothing personal; it’s just
business!
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