Adam smith believed that fair prices for goods are determined in a capitalist system
through competition between businesses.
by government regulation of businesses.
o by setting limits on imports and exports.
through competition between consumers.

Adam Smith believed that fair prices for goods are determined in a capitalist system through competition between businesses ( first choice).

The correct answer is A. Through competition between business

Explanation:

Adam Smith was an important Scottish economist consider as the "Father of Capitalism" due to different works related to the Capitalist economy, the ideas of Smith about the capitalist system included his belief on competition between business as one of the main factors that regulated economy because according to Smith in the capitalist system business are the ones that set prices and also the supply or the number of goods or services available and at the same time this is affected by the competition between business and both factors determine aspects in the general economy. Considering this it is through competition between business prices for goods are determined accord to Adam Smith.

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