A competitive market is a type of economic environment where multiple sellers offer similar products or services. In this setting, no single seller has significant control over the market price, as competition drives prices down and encourages innovation. Buyers benefit from a variety of choices and can select products based on quality, price, and other factors. In a competitive market, the forces of supply and demand play a crucial role. When demand for a product increases, sellers may raise prices, attracting more competitors. Conversely, if demand falls, prices may drop, prompting sellers to improve their offerings or reduce costs to remain viable.