Final answer:
In a perfectly competitive market, the number of buyers and sellers is so large that one person cannot influence prices. The price is determined by the forces of supply and demand in the market.
Step-by-step explanation:
In a market where the number of buyers and sellers is so large that one person cannot influence prices, it is said to be a perfectly competitive market. In this type of market, no single buyer or seller has enough market power to affect prices. The principle of perfect competition assumes that there are many buyers and sellers, homogeneous products are being traded, and there is free entry and exit from the market.
For example, in a perfectly competitive market for a commodity like wheat, there are numerous farmers producing wheat and a large number of buyers (consumers and businesses) that demand wheat. Each individual buyer and seller has no influence over the price of wheat, which is determined by the forces of supply and demand in the market.