2007-04-15 04:50:33 · 5 answers · asked by judi 1 in Social Science ➔ Economics
so companies can make you think its cheaper when they actually get the chance to round up the price.
2007-04-15 04:53:43 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The practice dates to the 1970's when gas prices first skyrocketed. Many things were tried with the gas prices. Some were to make prices seem more attractive while others were due to the gas pump technology of the time. The nine-tenths came from the same philosophy every store uses to make prices look more attractive by making prices $2.99 instead of $3. People think it is cheaper.
PS. The gas companies even tried to use liters instead of gallons because the gas pumps wouldn't go over $1 per gallon.
2007-04-15 12:32:06 · answer #2 · answered by Truth is elusive 7 · 0⤊ 0⤋
It is easier for gas companies to make more money doing this. If millions of people buy gas when the price is 2.009 instead of just 2.00, the gas company makes an extra nine thousand dollars!
2007-04-15 11:56:54 · answer #3 · answered by Chris 1 · 0⤊ 0⤋
Gas companies are poor in math
2007-04-15 11:59:11 · answer #4 · answered by Brave 3 · 0⤊ 0⤋
You're supposed to perceive it as being cheaper that way.
2007-04-15 12:02:06 · answer #5 · answered by ♥Lucky♥ 6 · 0⤊ 0⤋