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Price mechanism is an economic term that refers to the manner in which the prices of commodities affect the demand and supply of goods and services. Price mechanism affects both buyers and sellers who negotiate prices of goods or services.〔Shaw, W.H. (2008). Business Ethics: Sixth Edition. Belmont, Ca: Thomson Wadsworth〕 A price mechanism or market-based mechanism refers to a wide variety of ways to match up buyers and sellers through price rationing. An example of a price mechanism uses announced bid and ask prices. Generally speaking, when two parties wish to engage in a trade, the purchaser will announce a price he is willing to pay (the bid price) and seller will announce a price he is willing to accept (the ask price). The primary advantage of such a method is that conditions are laid out in advance and transactions can proceed with no further permission or authorization from any participant. When any bid and ask pair are compatible, a transaction occurs, in most cases automatically.〔A seminal article on the firm in relation to transaction costs is R. H. Coase (1937), "The Nature of the Firm," ''Economica'' 4(16), pp. (386–405 ), which has with some 41 uses of "price mechanism" in it (via cntrl-F: price mechanism), illustrating contexts for its usage.〕 ==Effects of the price mechanism== Price Mechanism causes many changes in the economic environment. If there is an increase in demand, then prices will go higher causing a movement along the supply curve.〔Pettinger, T. (n.d.). Price Mechanism in the Long Term. In Economics Help. Retrieved April 10, 2011, from http://www.economicshelp.org/microessays/equilibrium/price-mechanism-long-term.html〕 An example of price mechanism in the long term is the oil crisis during the 1970s. The crisis caused more nations to start producing its own oil due to dramatic price increases of oil. Since more nations started to produce oil, the supply curve shifted more to the right meaning there was more supply of oil. Price Mechanism affects every economic situation in the long term. Another good example of price mechanism in the long run is fuel for cars. If fuel becomes more expensive, then the demand of fuel would not decrease fast but eventually companies will start to produce alternatives such as biodiesel fuel and electrical cars.〔Pettinger, T. (n.d.). Price Mechanism in the Long Term. In Economics Help. Retrieved April 10, 2011, from http://www.economicshelp.org/microessays/equilibrium/price-mechanism-long-term.html〕 Price mechanism is a system by which the allocation of resource and distribution of goods and services are made on the basis of relative market price. 抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』 ■ウィキペディアで「price mechanism」の詳細全文を読む スポンサード リンク
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