With the objective of simulating the physical behavior of electrons in a dynamic background, we investigate a cold atomic Bose-Fermi mixture confined in an optical lattice potential solely affecting the bosons. The bosons, residing in the deep superfluid regime, inherit the periodicity of the optical lattice, subsequently serving as a dynamic potential for the polarized fermions. Owing to the atom-phonon interaction between the fermions and the condensate, the coupled system exhibits a Berezinskii-Kosterlitz-Thouless transition from a Luttinger liquid to a Peierls phase. However, under sufficiently strong Bose-Fermi interaction, the Peierls phase loses stability, leading to either a collapsed or a separated phase. We find that the primary function of the optical lattice is to stabilize the Peierls phase. Furthermore, the presence of a confining harmonic trap induces a diverse physical behavior, surpassing what is observed for either bosons or fermions individually trapped. Notably, under attractive Bose-Fermi interaction, the insulating phase may adopt a fermionic wedding-cake-like configuration, reflecting the dynamic nature of the underlying lattice potential. Conversely, for repulsive interaction, the trap destabilizes the Peierls phase, causing the two species to separate.