It's a psychological trigger and breaking point. It's exactly the same reason why everything in the grocery store is $x.99. $1.99 is a whole different mental commitment than $2.00. It may not seem like it when you just see the two next to each other, but it's absolutely verified.
Recently because of the devaluation of a single penny in the minds of most Americans, a change was noticed. That is the magic of ending in a 7 instead of a 9. Now people respond as well or better to a whole dollar amount that ends in 7.
Plain old fashioned marketing 101. They do it because it works.
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