Adam Smith suggests that increased competition will allow prices to be kept at equilibrium or natural price. This is further explained below.
What is equilibrium price?
Generally, When there is a balance between the supply of products and the demand for those items, an equilibrium price is reached. Whenever a major index goes through a phase of consolidation or sideways motion
In conclusion, Adam Smith argues that market forces will stabilize prices at a natural level of competition is enhanced.
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