Behavioral economics theory suggests that consumers respond more positively to a price of $3.99 than they do to a price of $4.

Name: Behavioral economics theory suggests that consumers respond more positively to a price of $3.99 than they do to a price of $4.
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This is because of the psychological pricing strategy known as "charm pricing," where prices are set just below a round number, making consumers perceive the price as being significantly lower.

Behavioral Economics Theory Suggests That Consumers Respond More Positively to a Price