Adam Smith believed that fair prices for goods are determined in a capitalist system. These after system are the choices through competition between businesses.by government regulation of businesses.by setting limits on imports and exports. Through competition between consumers.
Adam Smith believed that through a system of unfettered competition in the marketplace or unrestricted competition between producers to provide the best price to customers through the most efficient means of production. Therefore, only the businesses that could produce goods the most efficiently to offer the best price would succeed in the market.