Why are prices for goods and services not all set in multiples of ##Question_Title##.05 in order to eliminate pennies?

Question

Why are prices for goods and services not all set in multiples of $0.05 in order to eliminate pennies?

Answer 1

because there's no reason to eliminate the penny (at least not alone).

if prices are going to be set in 1/100 increments (use 2 decimal places) then it would be crazy to eliminate the penny.

now, if you wanted to switch to only using 1 decimal place (and count in 1/10 instead of 1/100) that might make a bit more sense.  but then we would have to eliminate the most popular coin in the country - the quarter.

let sleeping dogs lie - each unit of currency serves a purpose.

Answer 2

The Penny hasn't been eliminated yet.

Answer 3

The penny should be eliminated.

A nickle is worth less than a penny was thirty some years ago.

Answer 4

Years ago, marketing people discovered shoppers bought more of a product at $2.99 than when it was priced at $3.00.  They felt they were getting a much better deal than 1 cent off.  That's why gas stations sell gas at $4.35 and 9/10th of a cent instead of $4.36.  Everyone thinks they are getting a penny off, instead of 1/10th of a penny, at the first station