Here we take a look at the home players' performances and rate them out of 10.
The Reds were missing captain Steven Gerrard, who paraded the League Cup trophy prior to kick off, and injured defensive duo Glen Johnson and Daniel Agger, which meant recalls for Dirk Kuyt, Jamie Carragher, Jay Spearing and Martin Kelly.
Andy Carroll was left on the bench.
Liverpool missed a great chance to take the lead when Dirk Kuyt spurned a penalty, as well as scuffing the rebound.
Kuyt and fellow forward Luis Suarez both hit the woodwork while their teammates passed up a succession of opportunities to score again, with Martin Kelly and Jordan Henderson being two of the main culprits.
Despite a plethora of chances to find the net, the Liverpool players actually didn't manage to score a single goal, with Arsenal's Laurent Koscielny scoring an own goal before Robin van Persie scored once in each half to hand the three points to his side, so ending Liverpool's unbeaten home record this season.
Here are the ratings for the Liverpool players against the Gunners.