In a perfectly competitive market, how do consumer preferences influence the pricing strategies of firms operating within that market structure?

In a perfectly competitive market, many firms sell similar products, and consumers have clear preferences for these products. When consumers prefer one product over another, it can affect how much they are willing to pay, which in turn influences the prices that firms set. For example, if consumers start to prefer organic apples over regular apples, the demand for organic apples will rise, prompting firms to increase their prices for those apples. However, because the market is competitive, if one firm raises its price too much, consumers will simply buy from another firm that offers a lower price. Therefore, firms must closely monitor consumer preferences and adjust their prices accordingly to stay competitive and attract buyers.