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# Agricultural Price Transmission

## Definition

The process by which price changes in one agricultural market or region affect prices in other markets, facilitated by trade and transportation. Agricultural price transmission enables markets to respond to changes in supply and demand conditions.

## Source Chapter

Book I, Chapter 11

## Context

Smith examines how improvements in transportation and market integration affect agricultural price transmission, enabling more efficient resource allocation and reducing regional price disparities.

## Economic Domain

Exchange

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