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# Agricultural Price Floors

## Definition

Minimum prices set by government for agricultural products, typically above market equilibrium levels, intended to support producer incomes. Agricultural price floors can lead to surpluses and market inefficiencies.

## Source Chapter

Book I, Chapter 11

## Context

Smith discusses various forms of agricultural price support, including the bounty on grain exports, arguing that such interventions often create more problems than they solve and reduce overall economic efficiency.

## Economic Domain

Regulation

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