842 B
842 B
Market Price Mechanism for Rude Produce
Definition
The process by which urban commercial centres create ready markets for agricultural produce, encouraging cultivation and improvement through better prices for growers while offering cheaper goods to consumers, with the greatest benefit accruing to neighbouring rural areas due to lower transportation costs.
Source Chapter
Book III, Chapter 4
Context
Smith's first mechanism explaining how commerce improves the country, showing how towns provide markets that extend beyond their immediate vicinity to all regions with which they trade, encouraging agricultural industry and improvement throughout connected areas.
Economic Domain
Exchange