Question

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

Explanation:

Adam Smith, the father of modern economics, advocated for a free - market system. In his view, the "invisible hand" of the market, which operates through competition among businesses, leads to fair prices. Government regulation (option 2) was contrary to his laissez - faire philosophy. Setting limits on imports and exports (option 3) is a form of protectionism, which he generally opposed. Competition between consumers (option 4) is not the main mechanism he proposed for price determination; it is business - to - business competition.

Answer:

through competition between businesses.