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why does a gallon of gasoline always have 9/10 if a cent at the end of the price?
5 Answers
- ScottLv 61 decade agoFavorite Answer
That's part of the Tax scheme. Read further or go to your States website and see what the tax is on a gallon of gas. Then think about the roads and see if you think the tax money is doing a good job for your state.
Source(s): Contrary to all the other answers it has nothing to do with marketing Its all in the "Tax" Suggestion for everyone to check out the amount of tax on a gallon of gas.... - The RabbiLv 51 decade ago
Marketing. It goes waaay back in time to the first psychological profile of a customer. People remember the big numbers, so we end up dropping the "change". It also ties into "rounding up or rounding down". If you want to sell an item for $9 you could make it one nickel less and people would see it for $8, perceiving it to be a greater value.
- ta2dpilotLv 61 decade ago
I think it's so that it will appear to be cheaper at first glance than it really is. That may be totally wrong, but that's a good question...I have often wondered.
- oklatomLv 71 decade ago
Discussed a lot here. http://depts.gallaudet.edu/ESL/cloze13r.htm
Bottom line, it is a marketing ploy. $23,999 sounds cheaper than $24,000.
And $1.999 is cheaper than $2
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- xobeccaxoLv 41 decade ago
they always do that for no reason just to make it appear cheaper but it really isn't