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# Agricultural Price Discovery

## Definition

The process by which market prices for agricultural products are established through the interaction of buyers and sellers, reflecting information about supply, demand, and production costs. Agricultural price discovery enables efficient resource allocation.

## Source Chapter

Book I, Chapter 11

## Context

Smith discusses how agricultural price discovery functions in different market conditions and how government interventions can interfere with this process, reducing the efficiency of agricultural markets.

## Economic Domain

Exchange

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