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?
This is wrong. In fact, itâs the opposite: market failure is often desired. If people desired otherwise with sufficient preference, there would be no âmarket failureâ to speak of. âMarket failureâ specifically refers to a situation where market phenomena are unable to reach an economically efficient outcome. That is, the equilibrium price or equilibrium target is systemically unreachable.