According to the concept of laissez-faire, prices and wages are best determined by the?

The concept of laissez-faire is rooted in the idea that economic markets function most efficiently when they are left free from government intervention. In a laissez-faire system, prices and wages are primarily determined by the forces of supply and demand within a free market. This means that consumers and producers make choices that influence the allocation of resources, pricing, and overall economic equilibrium without external controls.

In this context, the free market is seen as the best mechanism for determining prices because it encourages competition, innovation, and responsiveness to consumer needs. When producers can freely enter and exit the market and set prices based on their costs and demand, the economy tends to allocate resources more efficiently than if government entities or other forms of regulation were involved. This self-regulating feature of markets underlies the principles of laissez-faire economics.