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

The answer is: A.through competition between businesses.

According to smith, businesses would always wanted to obtain as money costumers as possible. During the process of competition, they would keep trying to provide the customers with the cheapest price possible. Eventually, the power of supply and demand would bring the price of the product into a fair point.