From here:
https://azure.microsoft.com/en-us/pricing/details/ip-addresses/
Not quite sure why the reserved IP costs less? I assume this is by design, but if a student asked me why this is the case, I'd have no explanation. Anyone have any ideas or a link to documentation? Thanks.
Per the documentation,
Looking at the above, the static IP can stay unused which means it may be available but may not be used in a running deployment. However, dynamic IP is always assigned to a running deployment and is never left unused as it will be released as soon as the IP is disassociated or stopped.
Hence, Azure charges a nominal fee for unused reserved/static IP addresses.
Refer the FAQs under the pricing table: https://azure.microsoft.com/en-us/pricing/details/ip-addresses/#faq