This paper presents a model of a monopolistic firm's price adjustment. The firm's demand and cost are exposed to random shocks, and price adjustments are costly. It is shown that an increase in the riskiness of the shocks will have an ambiguous effect both on the expected size of the price adjustments and on the time interval between two consecutive price adjustments. It is also shown that an increase in the frequency of the shocks will have an ambiguous effect on the former and will decrease the latter, while an increase in the cost of price adjustments or in the interest rate will increase both the former and the latter.