Gabriella Sax believes that customers in her dress shop find certain prices very appealing. Between these price level, all prices are seen as roughly the same, and price cuts in these ranges generally do not increase the quantity sold (i.e., the demand cu

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Gabriella Sax believes that customers in her dress shop find certain prices very appealing. Between these price level, all prices are seen as roughly the same, and price cuts in these ranges generally do not increase the quantity sold (i.e., the demand curve tends to drop vertically within these price ranges). Therefore, SAx prices her items as close as possible to the top of each such price range. This is refered to as:

 
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