Problem
You have completed your study on the law of demand and supply and the logic of individual choice; the foundation of supply and demand where the role of prices have been examined. The price of many goods and services end in 99 cents. Why don't businesses round to the nearest whole dollar? Your group is required to explore this business practice, come up with answers as to why you believe businesses engage in this practice.
1. How do you think this practice has influenced consumer buying behavior?
2. What impact would this practice have on business revenue, if the price of goods and services are rounded to the nearest whole dollar?
3. What would be the implications for consumer's marginal utility and willingness to buy, if prices will no longer end in 99 cents, rather prices will be rounded to the nearest whole dollar?