A popular brand of organic milk has been selling at local supermarkets for $5.99 per gallon. Recently, the one-gallon jugs (128 oz.) have been replaced by ¾-gallon jugs (96 oz.), which sell for $4.99.
(a) Name and describe the pricing tactic that most likely is being used here. What is this technique designed to accomplish?
(b) Give some reasons why the management of this brand of milk might have judged this pricing technique to be called for in this situation.