Editing Price point (section)

==Causes==
There are three main reasons for price points to appear:

# [[Consumer theory#Price effect as sum of substitution and income effects|Substitution]] price points
#* price points occur at the price of a close substitute
#* when an item's price rises above the cost of a close substitute, the quantity demanded drops sharply<ref>{{Cite web |title=Price Reform |url=https://kokqa.com/price-reform/ |access-date=2023-03-07 |website=Kokqa |language=en-US}}</ref>
# [[Customary pricing|Customary price]] points
#* the [[Market (economics)|market]] grows accustomed to paying a certain amount for a type of product
#* increasing the price beyond this amount will cause sales to drop dramatically{{Citation needed|date=May 2010}}
# Perceptual price points (also referred to as "[[psychological pricing]]" or as "odd-number pricing")
#* raising a price above 99 cents will cause demand to fall disproportionately because people perceive $1.00 as a significantly higher price<ref>{{Cite journal|title = Increased Consumer Sales Response Through Use of 99-Ending Prices|last1 = Schindler|first1 = Robert M.|date = 1996|journal = Journal of Retailing|last2 = Kibarian|first2 = Thomas M.|volume = 72|issue = 2|pages = 187–199| doi=10.1016/S0022-4359(96)90013-5 }}</ref>