03-14-2008, 09:29 AM
Mene -
It's called Price-Pass Through
Since each participant in this supply/marketing chain incurs some cost and wishes to make a profit, the price normally increases with each sale. As such, any change in price at the refinery, or any intermediate point of sale downstream, should be expected to affect prices at each successive sale.
It's called Price-Pass Through
Since each participant in this supply/marketing chain incurs some cost and wishes to make a profit, the price normally increases with each sale. As such, any change in price at the refinery, or any intermediate point of sale downstream, should be expected to affect prices at each successive sale.