In Defense of the Penny

How would eliminating pennies affect prices in America?

Answer at Explanation down there

Explanation:

Americans understand that eliminating the penny would lead to a rounding process and cost them hundreds of millions of dollars in higher prices. Third, rounding to the nickel will lead to a demand for increased production of nickels, with a production cost of almost nine cents.

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In effect, eliminating the penny means all retail prices would end in zero or five. Some prices would rise a few pennies; some would be rounded down. Prices that end in 99 cents are common, and penny proponents have argued that eliminating pennies would amount to a one-cent sales tax.