Because it is how we see prices. It takes a bit of effort to see it as 20.
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They may list it as $19.99 but I'm always going to call it twenty bucks and eleven cents.
"Keep the change"
But you get a penny back, isn't that great?
If there is any research from the last 50 years suggesting this actually works, I'd love to see it.
It doesn't take much to convince the people in charge they're right. Usually the amount is minimum wage.