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# Agricultural Price Discrimination

## Definition

The practice of charging different prices for the same agricultural product in different markets or to different customers, based on their willingness or ability to pay. Agricultural price discrimination can increase seller profits but may reduce economic efficiency.

## Source Chapter

Book I, Chapter 11

## Context

Smith discusses how agricultural price discrimination occurs in different markets and how transportation costs and market conditions affect the ability of sellers to practice price discrimination.

## Economic Domain

Exchange

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