The same ride from Times Square to Central Park can cost $17 at 3 p.m. on a Monday and closer to $24 three hours later. Students expect price swings like that from ride shares and plane tickets. Fewer realize it is coming to the store shelf: Best Buy and Kohl’s have rolled out electronic price tags, and Kroger has tested digital labels that can change the price of an item in seconds.

In the Wall Street Journal video, Dynamic Pricing, Explained: Why Prices Are Changing More Often, pricing experts explain how businesses from gas stations to Best Buy and Kroger use algorithms that track costs, competitor prices, and demand to update prices automatically, and why 75% of retailers on one pricing platform said they had increased how often they change prices.

Click these links to access the video, student guide, and answer key

Wall Street Journal Video | NGPF Student Viewing Guide + Answer Key

Video Length: 5:46

Discussion Questions

Use these to spark conversation after students watch:

1. Dynamic pricing means two customers can pay different prices for the same item depending on when they buy it. Do you think this is fair to consumers? Why or why not?
2. If a store near you switched to digital price tags and started updating prices throughout the day, would you change your shopping habits?

This video pairs well with NGPF’s Consumer Skills unit.

This resource was created through NGPF’s partnership with Dow Jones, bringing high quality financial journalism into personal finance classrooms across the country for free.

Every WSJ Wednesday, NGPF will highlight a classroom-ready article, video, or data crunch resource from the Wall Street Journal, MarketWatch, or Barron’s, including a student guide, discussion questions, and an answer key.

About the Author

Yonathan Tadesse

Yonathan is a Dallas-based Curriculum Designer at NGPF with 12 years of experience as a high school math, college transition, and financial literacy teacher. An award-winning educator, he has a track record of launching innovative programs at the high school level that expand access and opportunity for students. He is a graduate of Emory University and is passionate about advancing financial education for all students. Outside of work, Yonathan loves spending time with his wife and two kids, working out, playing chess and poker, and learning new things.