In a perfectly competitive market, the price of a product is determined by the intersection of the supply and ______ curves, ensuring that no single firm can influence the market price.

In a perfectly competitive market, the price of a product is determined by the intersection of the supply and demand curves. This means that the amount of goods that sellers are willing to sell at different prices (supply) meets the amount of goods that buyers are willing to purchase at those prices (demand). Because many firms produce identical products, no single firm can control the price; they must accept the market price. For example, if many farmers grow wheat, and they all sell it at the same price, no one farmer can charge more without losing customers. This balance ensures that resources are used efficiently and that prices remain stable in the market.