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Marketing. $10.99 looks like a much smaller number than $11.00.
0.99 means the store pays less tax than if an item cost 1.00, but they make the same profit. The result is that the store gets the same amount they would get anyway, but customers get a smal discount. Hence an item will cost 0.99, or 9.90, or 99.90 (or some form of these - which is why you get $1.99 but not $1000.99).
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