Why do gas stations have a fraction of a cent added to every gallon?
In: Economics
Gas stations have a fraction of a cent on their price per gallon because it helps them advertise a price that looks cheaper.
For example, if the price is $3.99 and 9/10 cents, it looks closer to $3.99 than to $4.00. This small difference can make the price seem lower, even though it’s almost $4.00.
It’s a marketing trick to attract more customers.
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