The chapter discusses how businesses decide whether to make big or small price changes over time. Sheshinski and Weiss found that for a monopoly facing inflation, it's best to have a series of price intervals where the price stays the same. When inflation erodes the real price below a certain level, the price is increased to maintain a desired real price. This helps balance profit and customer demand. The specific price levels depend on factors like inflation rate and cost of adjusting prices.