How do developers decide the prices of products?

Hi all!
So this is something that has puzzled me for a while. How do developers come up with the prices for whatever it is they are selling using http://developer.paypal.com? I have noticed that they have a tendency to choose amounts that end in .49 or .99, or less commonly .95.
Could someone explain the process of how and why this method has been used?
Many thanks!

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