<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-3-chapter-01 -->

# Agricultural Price Equalization

## Definition

The market mechanism where agricultural produce sells for similar prices regardless of distance from market towns, with transportation costs incorporated into the price differential. This equalization ensures consistent returns for producers while maintaining incentives for efficient distribution and market access.

## Source Chapter

Book III, Chapter 1

## Context

Smith uses this price mechanism to illustrate how market forces create efficiency in resource allocation, demonstrating how transportation costs are naturally incorporated into prices while maintaining incentives for agricultural production and distribution.

## Economic Domain

Exchange

---
