Q: What's the basic advantage of having it jump around so much?

A: The reason that it jumps up and down is essentially some type of price discrimination through time. First, the retailer may want to give a discount to people that are really sensitive that are coming to the store. So the idea is that they could go out and they could stockpile -- they see that ``look, my favorite orange juice is on sale, I'm going to buy my next two or three weeks supply.'' Then the next week they know that the price will go back up, whereas other people just may not be interested in buying a lot or stockpiling. The other thing is that the price the retailer is being charged is also changing. So here you will notice that the price is around $3.00 and now the price drops down to around $2.20 -- what happened is that orange juice is a seasonal good. Here you are entering some kind of winter period, and they probably had a bad harvest and so are going the opposite way. Here you're going into the winter period and here you're going into a good period, so the idea is that there are a lot of effects on what the retailer can charge. It's not just price, it's also the wholesale cost they pay. Yes?

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