Spot price of West Texas Intermediate in relation to the price of Brent Crude. Historically price differences between Brent and other index crudes have been based on physical differences in crude oil specifications and short-term variations in supply and demand.
When does market failure occur? Whenever resources are not allocated efficiently. ie. total surplus is not maximised. What are the main types of market failure?
A Market Shortage occurs when there is excess demand-that is quantity demanded is greater than quantity supplied. In this situation, consumers won't be able to buy as much of a good as they would like.