Why does every gas station sell their gas at a certain price plus 9/10th of a cent for every gallon?

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Why does every gas station sell their gas at a certain price plus 9/10th of a cent for every gallon?

2007-03-14 11:20:00 · 4 answers · asked by mulderlx 2 in Social Science ➔ Economics

4 answers

So that it seems like a lower price, and many people fall for it.

2007-03-14 11:23:29 · answer #1 · answered by Anonymous · 0⤊ 1⤋

This took place back in the 1920's and 30's when gas was 3 cents a gallon, and to be competitive, some stations would charge 9/10th of a penny just to be smaller. Here is a link that explains it better!

http://www.slate.com/id/2125099/

2007-03-14 11:24:52 · answer #2 · answered by ? 2 · 2⤊ 0⤋

Because 9/10 of a cent sounds less that an extra penny.

2007-03-14 11:28:34 · answer #3 · answered by ginaforu5448 5 · 0⤊ 0⤋

Just a marketing scheme. Tests show that 1.299 looks cheaper than 1.30 more signficantly than a thousandth of a cent.

2007-03-14 11:24:29 · answer #4 · answered by Anonymous · 0⤊ 1⤋