Answer:
Listing of prices ending in 9,99 or 95 is used to make products appear cheaper that they really are. As we are accustomed of reading from left to right they register the first number and then make an immediate conclusion about the price. Several studies about sales tell that even 1 cent difference in the prices ending in .99 and .00 can have tremendous effect on the sales.
The same marketing strategy would be used to list a $8.00 item for $7.99.