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# 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

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