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# Real Price

## Definition

The value of a commodity measured by the quantity of labour it can command
or the amount of subsistence it can provide, representing its true economic
worth independent of monetary fluctuations.

## Source Chapter

Book IV, Chapter 5

## Context

Smith emphasizes that real prices, not nominal prices, determine actual
wealth and prosperity, using this distinction to critique bounties that
raise nominal prices while potentially lowering real values.

## Economic Domain

Exchange

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