The following is an excerpt from adam smith’s the wealth of nations. where in the modern free enterprise system can his economic philosophies be seen? ,br> the actual price at which any commodity is commonly sold is called its market price. it may either be above, or below, or exactly the same with its natural price. the market price of every particular commodity 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, or the whole value of the rent, labor, and profit, which must be paid in order to bring it thither. when the quantity of any commodity which is brought to market falls short of the effectual demand, all those who are willing to pay the whole value of the rent, wages, and profit, which must be paid in order to bring it thither, cannot be supplied with the quantity which they want. rather than want it altogether, some of them will be willing to give more. a competition will immediately begin among them, and the market price will rise more or less above the natural price, according as either the greatness of the deficiency, or the wealth and wanton luxury of the competitors, happen to animate more or less the eagerness of the competition. 1 1. adam smith, an inquiry into the nature and causes of the wealth of nations (london: methuen & co., ltd., 1904), book i: chapter vii, book iv: chapter ix, a. capitalist countries do not allow for marketplace competition between companies to determine prices. b. in the united states, prices of goods and services are set according to what consumers are willing to pay. c. in a free market system, the government only regulates prices when there are several businesses in competition. d. because competition can lead to price deflation, countries like the united states have established a minimum wage.