At the Store
Iceland is a special little country were ‘common sense’ does’t always work the way you think it would. Case in point: price per weight for goods of varying packaging sizes.
Example 1: Basmati Rice:

The cheapest rice per weight: 296 isk for 500 g that come in four handy bags to boil the rice in so it's easier to wash your pot afterwards. This works out to 592 isk/kg

Here's the SAME AMOUNT, 500 g, of the SAME KIND of rice but now it's 429 isk, and not 296 isk. Oh, and yes, it comes in one bag and not a box with four bags. This works out to 858 isk/kg instead of 592 isk/kg.

And last, but not least, here is the biggest bag they have for sale of this kind of rice: it's 1000 g or twice the weight of the other ones. This package costs 759 isk/kg, which is 99 isk/kg cheaper than the 500 g bag (with no extra bags), but 167 isk/kg more expensive than the box with four bags in it!!
To summarize:
500 g in a paper box with four plastic boil-in bags: 296 isk or 592 isk/kg
500 g in a bag: 429 isk or 858 isk/kg. The difference 429 – 296 = 133 is slightly more than a dollar (currenctly 114 isk in a dollar)
1000 g in a bag : 759 isk/kg. Yes, it’s cheaper than the 500 g in one bag, but more expensive than the 500 g in a box with four bags.
It boggles the mind.
Example 2: Laundry Detergent:

Ooh look! A box of 1.9 kg of laundry detergent is 696 isk, or 366 isk/kg (just north of $3 for 4 lbs).

Here is the exact same laundry detergent, but much more of it in one box, a whopping 8 kg (17 lbs). This box will set you back 3185 isk, or 398 isk/kg, which is 32 isk/kg MORE than the small box, utterly contradicting the 'okonomikob' label which is Danish for 'Economic buying'. While I was there scratching my head over this conundrum, a couple came up and grabbed a 8 kg box. I politely mentioned that they were paying more per kg for the big box, and they switched to a smaller box. I felt slightly victorious!
Sadly, I neglected to take a picture of the same type of laundry detergent ‘for colored laundry’, which costs an arm and a leg for a tiny box. I think it was about a quarter of the size of the smaller box, and a lot more expensive! Why?!?! Whyyyyyyy?!?!?