adam smith
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Title: adam smith

Essay Details:

Subject: Business
Author: David S
Date: March 28, 2014
Level: University
Grade: C
Length: 2 / 447

Essay text:

The nominal price is the money value which includes the real price and wages. The market price of a good is "regulated by the proportion between the quantity which is actually brought to market, and the demand of those who are willing to pay the natural price of the commodity."(WN I.vii.73) Adam Smith is able to show that the "labor belongs to the labouer; and the quantity of labour commonly employed in acquiring or producing any commodity, is the only circumstance which we can regulate the quantity of labour which it ought commonly to purchase, command, or exchange for."(WN I.vi.65) Richard Cantillon, one of Smith's precursors, also agrees that "prices are fixed by the proportion between the produce exposed for sale and the money offered for it...

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