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# Real Price of Commodities

## Definition

The intrinsic value of commodities measured by the quantity of labour required to acquire them, representing the actual toil and trouble that must be undergone to obtain them. This differs from nominal price, which is measured in money terms.

## Source Chapter

Book I, Chapter 5

## Context

Smith's central distinction in this chapter, arguing that labour is the real measure of exchangeable value while money serves only as a nominal measure. He explains that real price reflects the actual effort required to produce or acquire goods.

## Economic Domain

Exchange

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