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?
Why did the market collapse? Prices peaked towards the end of 1636 when the bulbs became so overpriced that many people decided to sell them in order to lock in profits. By February 1637, sellers flooded the market which caused the price of tulips to plummet.