615 B
615 B
Market Price Adjustment
Definition
The process by which prices are determined through the higgling and bargaining of the market, adjusting according to supply, demand, and the relative difficulty of different types of labour.
Source Chapter
Book I, Chapter 5
Context
Smith describes this as the mechanism by which the market settles on prices that, while not perfectly accurate, are sufficient for carrying on the business of common life.
Economic Domain
Exchange