22 lines
784 B
Markdown
22 lines
784 B
Markdown
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-4-chapter-02 -->
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# Temporary Versus Permanent Price Effects
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## Definition
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The distinction between short-term price fluctuations caused by temporary market conditions and long-term price changes resulting from fundamental economic factors or government policies. Smith argues that trade restrictions often create permanent price distortions.
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## Source Chapter
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Book IV, Chapter 2
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## Context
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Smith distinguishes between temporary market price fluctuations and permanent price effects caused by government regulations, arguing that protectionist policies often create lasting distortions in market prices that harm economic efficiency.
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## Economic Domain
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Distribution
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---
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