Cody Gakpo's tap-in and another perfectly-executed Mohamed Salah penalty prolonged Man City's crisis and kept Arne Slot's scintillating side firmly in control of the race for glory, and it was no less than the Reds deserved in front of a raucous Kop.
Liverpool pressing Man City to the nines and Guardiola's men cheaply losing possession in midfield was a harbinger of doom for the champions, who could have had no complaints when Gakpo broke the deadlock following sensational passes from both Trent Alexander-Arnold and Mohamed Salah.
Refusing to rest on their laurels after their merited opener, Liverpool continued to find extreme joy both playing through the disjointed Man City midfield and over the top of the visitors' backline, although the Reds were their own worst enemies when it came to finishing their chances.
At the other end of the field, City's efforts to pick the Liverpool lock were remarkably futile; Caoimhin Kelleher did not have a single save to make in the first half, thanks partly to the Reds' rigid defensive structure and the Citizens' total lack of an incisive final ball.
Guardiola's men showed a bit more attacking verve at the start of the second half, but the omission of a true creator akin to a prime Kevin De Bruyne stuck out like a sore thumb, and the die was cast when Salah stroked home from the penalty spot in the final 15.
Not long after, a rare Virgil van Dijk mistake almost gifted De Bruyne a lifeline goal, but Kelleher produced a critical save with the inside of his legs; De Bruyne's dismal attempt summed up another highly demoralising afternoon for the sorry Sky Blues.
Despite seeing his side's hopes of retaining their crown suffer their most fatal blow yet, a smirking Guardiola had time for jokes, holding up the number six with his fingers as the buoyant Liverpool contingent bellowed out 'you're getting sacked in the morning'.
From six to nine, Liverpool maintain their unassailable lead over second-placed Arsenal and third-placed Chelsea in the Premier League table, while Man City end the weekend outside of the Champions League places as their stuttering season hits low ebb after low ebb.
LIVERPOOL VS. MAN CITY HIGHLIGHTS
Cody Gakpo goal vs. Man City (12th min, Liverpool 1-0 Man City)
Inevitable.
Liverpool have suffocated Man City in these early stages, and just a couple of minutes after Van Dijk struck the post with a header, the hosts deservedly lead.
Alexander-Arnold plays a phenomenal pass through to Salah, and the Egyptian's inch-perfect ball to the back stick finds the run of Gakpo, who ghosts past an unawares Kyle Walker and has the simplest of tap-ins.
Mohamed Salah goal vs. Man City (78th min, Liverpool 2-0 Man City)
A catalogue of errors from Man City are punished, and Liverpool are surely streaking eleven points clear of the capitulating champions. Luis Diaz robs Kyle Walker of possession after Darwin Nunez hustles and harries Ruben Dias close to his own box, and Stefan Ortega comes flying out on Diaz.
Chris Kavanagh does not hesitate to point to the spot, despite City's mass protestations, and Salah - after staying warm with some keepy-ups while City were complaining - finds the bottom corner out of Ortega's reach.
MAN OF THE MATCH - MOHAMED SALAH
A penny for the thoughts of the Liverpool hierarchy as Salah put up another electrifying display against the champions of England, one that surely warrants the lucrative new contract that he so craves.
Providing an exquisite pass for Gakpo to tap home before doing what he does best from the penalty spot, Salah has now scored and assisted in 36 different Premier League matches, matching the record set by Wayne Rooney. Ageing like a fine wine and all that.
LIVERPOOL VS. MAN CITY MATCH STATS
Possession: Liverpool 44%-56% Man City
Shots: Liverpool 18-8 Man City
Shots on target: Liverpool 7-2 Man City
Corners: Liverpool 7-4 Man City
Fouls: Liverpool 9-8 Man City
BEST STATS
WHAT NEXT?
Still firmly in control of their Premier League title destiny, Liverpool hit the road on Wednesday for a date with Newcastle United, before next Saturday's Merseyside derby with Everton - the final one at Goodison Park.
As for City, who have now suffered four straight Premier League losses for the first time since August 2008, Guardiola's men will try to stop the rot at home to Nottingham Forest on Wednesday, not that it will reignite a title charge if the Slot machine continues to spin.