Sunday, September 27, 2009

[endless beer] at no extra cost

Let's say that at one time, the Canadian and US dollars were discounted by 10 cents on each side of the border (i.e., a Canadian dollar was worth 90 US cents in the US, and a US dollar was worth 90 Canadian cents in Canada).

A man walks into a bar on the US side of the border, [long ago when beer cost 10 cents], orders 10 US cents worth of beer, pays with a US dollar and receives a Canadian dollar in change. He then walks across the border to Canada, orders 10 Canadian cents worth of beer, pays with a Canadian dollar and receives a US dollar in change.

He continues this throughout the day, and ends up drunk with the original dollar in his pocket.

Who pays for the drinks?

Here's what the official answer was.


Lord T said...

The bar owner when he comes to convert his foreign money into real (to him) money.

Lord T said...

Ooops that will teach me (probably not though) to explain better.

The owner in the conversion process has lost out on his potential value of the foreign money by taking it across the border and spending it on buying replacement beer for example. Then I realised I was trying too hard to help the poor barkeep thinking about how poor they are doing in the UK.

So I suppose the real answer and person who paid for it in your quiz was the previous customer who paid in the foreign currency in the first place.

julie said...

if the beer was only a dime and the guy was havin fun i would join him and pay