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?
What is a 'Stock Market Crash' A stock market crash is a rapid and often unanticipated drop in stock prices. A stock market crash can be the result of major catastrophic events, economic crisis or the collapse of a long-term speculative bubble. However, public panic is a major contributor. Hordes of people removing their money from the banks or scrambling to sell their stocks and other assets all at the same time causes economic turmoil and exacerbates any existing economic instability.