In a perfectly competitive market, how do consumers influence market structures when determining the price of goods?

In a perfectly competitive market, many buyers and sellers are present, which means no single person can control the price of goods. Consumers influence market prices through their demand for products; when many people want to buy a certain item, the demand increases, leading sellers to raise prices. For example, if a new smartphone is released and everyone wants it, the high demand can push its price up. Conversely, if fewer people want the product, sellers may lower the price to attract buyers. This back-and-forth between consumer demand and seller pricing helps shape the market structure, ensuring that prices reflect what people are willing to pay.