A gas station in South Ventalia charges $4.99 instead of $5.00 for regular gas and $9.99 instead of $10.00 for premium gas to encourage its customers to believe that its prices are low. This is an example of _____ pricing.
A) prestige
B) bundle
C) markup
D) odd-even

Question

Quizplus · Accepted Answer

This is an example of odd-even pricing, as the prices are set just below a whole number to create the illusion of a lower price while still earning a profit.

A Gas Station in South Ventalia Charges $4