An Inquiry Into the Nature and Causes of the Wealth of Nations - End of Book 1 Summary & Analysis

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End of Book 1 Summary and Analysis

This covers the final material of the first book. Here Smith begins to explain what is meant by limited and uncertain markets. Every market has a limitation to it. One perfect example of uncertainty is a mine. Perhaps it is not clear what can be done with the products. Uncertainty of markets can occur whenever a market needs to expand in order to find more demand for its surplus of supply. A market does not need to expand when the demand can be entirely met locally. Because of this, however, lack of demand can reduce prices and can cause the loss of productivity. Real markets are based upon the creation of a surplus of something. When no demand is found for a surplus good productivity normally declines since to produce any more than will be used is...

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