2006-08-14 10:40:17 · 7 answers · asked by pfsinnh 2 in Science & Mathematics ➔ Mathematics
Physiology -- to make you think that it cost less than it really does. For example compare the price of 2.98 9/10 and 2.99 -- there is only one cent difference when you pay for 10 gallons and the price is rounded up to 2.99 if you buy less, however the 2.99 looks more expensive.
2006-08-14 10:46:42 · answer #1 · answered by Soren 3 · 0⤊ 2⤋
for the same reason that so many things are priced just below the dollar mark
if we are not paying attention, we think $4.99 seems like a much better price than $5.01. This is because of our tendancy, subconsiously, to pay attention to the most important price digit, the first one.
gas pricing started carrying 10ths of cents in the price years ago when a tenth of a cent was significant in a gallon of gas that cost 25 cents
now sellers keep the tenth's column in the price because it looks lower to say 2.899 than 2.90
it is silly of course
2006-08-14 10:50:10 · answer #2 · answered by enginerd 6 · 1⤊ 0⤋
It's tax. When gas taxes were imposed, the meters on pumps didn't stop at less than cents the 9/10ths was put in place so the retailers got to keep the 1/10th as a processing fee for the tax.
2006-08-14 10:48:16 · answer #3 · answered by Anonymous · 0⤊ 1⤋
because 9/10's gets rounded up to the nearest whole cent, so you're then paying $2.99 a gallon, in actuality
2006-08-14 10:46:05 · answer #4 · answered by full_tilt_boogie 4 · 0⤊ 1⤋
Most people don't consider it to be a whole cent so they feel they're getting a bargain instead of paying what they really are which is $2.99.
2006-08-14 10:51:43 · answer #5 · answered by Cinnamon 6 · 0⤊ 1⤋
Used to be that it made the price seem cheaper but that was when it was .29 per gallon !! It really doesn't matter much now.
2006-08-14 10:45:29 · answer #6 · answered by MollyMAM 6 · 0⤊ 1⤋
so really you are paying $2.99, but you don't feel like you are. It's all about perception.
2006-08-14 10:45:49 · answer #7 · answered by Duds331 5 · 0⤊ 1⤋