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# Agricultural Price Elasticity

## Definition

The responsiveness of agricultural supply and demand to changes in prices, measured as the percentage change in quantity supplied or demanded divided by the percentage change in price. Agricultural price elasticity affects how markets respond to price changes.

## Source Chapter

Book I, Chapter 11

## Context

Smith examines how agricultural supply and demand respond to price changes over different time periods, noting that supply is typically less elastic in the short run due to the biological constraints of agricultural production.

## Economic Domain

Exchange

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