Jmdonev: 1 revision imported

2026-07-02T20:55:27Z

1 revision imported

← Older revision	Revision as of 20:55, 2 July 2026
(No difference)

energy>Jmdonev at 17:59, 25 June 2026

2026-06-25T17:59:50Z

← Older revision		Revision as of 17:59, 25 June 2026
Line 1:		Line 1:
	[[Category:Done ~~2016~~-04-30]]		[[Category:Done 2026-07-01]]
	<onlyinclude>A '''market force''' is a factor that has some ability to affect change in a market. Market forces determine the [[price]] and quantity of a good or service in a market.</onlyinclude><ref>J.Black, N. Hashimzade, and G. Myles. (2009) "Market Economy." [Online], Available: http://www.oxfordreference.com/view/10.1093/acref/9780199237043.001.0001/acref-9780199237043-e-1924?rskey=eaSXjc&result=1, 2009 [Aug 10, 2016]</ref> Market forces occur naturally in a [[free market]] economy and are controlled by government intervention.		<onlyinclude>A '''market force''' is a factor that has some ability to affect change in a market. Market forces determine the [[price]] and quantity of a good or service in a market.</onlyinclude><ref>J.Black, N. Hashimzade, and G. Myles. (2009) "Market Economy." [Online], Available: http://www.oxfordreference.com/view/10.1093/acref/9780199237043.001.0001/acref-9780199237043-e-1924?rskey=eaSXjc&result=1, 2009 [Aug 10, 2016]</ref> Market forces occur naturally in a [[free market]] economy and are controlled by government intervention.

Line 23:		Line 23:
	==References==		==References==
	{{reflist}}		{{reflist}}
			[[Category: Uploaded]]

Jmdonev: 1 revision imported: From the summer

2016-09-17T22:29:44Z

1 revision imported: From the summer

← Older revision	Revision as of 22:29, 17 September 2016
(No difference)

Jmdonev at 22:10, 25 August 2016

2016-08-25T22:10:56Z

New page

[[Category:Done 2016-04-30]]
<onlyinclude>A '''market force''' is a factor that has some ability to affect change in a market. Market forces determine the [[price]] and quantity of a good or service in a market.</onlyinclude><ref>J.Black, N. Hashimzade, and G. Myles. (2009) "Market Economy." [Online], Available: http://www.oxfordreference.com/view/10.1093/acref/9780199237043.001.0001/acref-9780199237043-e-1924?rskey=eaSXjc&result=1, 2009 [Aug 10, 2016]</ref> Market forces occur naturally in a [[free market]] economy and are controlled by government intervention.

An example of market force acting is when the price of [[crude oil]] increases when there are shortages in the [[supply]]. These shortages can happen for a number of reasons. The [[demand]] for crude oil could go up suddenly, or a disruption in the supply chain from a natural disaster like a hurricane (which happened in the United States when hurricane Katrina interrupted oil production in 2005<ref>See for example: http://www.nbcnews.com/id/9146363/ns/business-local_business/t/pump-prices-jump-across-us-after-katrina/#.V79r0KJvmYY accessed August 25th, 2016.</ref>. Additionally, an armed conflict (like a war) or a damaged [[pipeline]] can cause shortages.<ref>A. Goolsbee, S. Levitt and C. Syverson. ''Microeconomics''. New York: Worth Publishers, 2013, pp. 15.</ref> When these shortages occur, they become market forces. The demand outstrips supply which causes the prices to rise as the crude oil is less available and therefore consumers will be willing to pay more.

==Market Forces in Action==
[[File:Market Forces- Crude oil.png|450px|thumb|right|Figure 1. The changes resulting from a supply disruption in the market for crude oil.]]

Assume that '''Country A''' gets all of its crude oil form '''Country B''', a war breaks out in the eastern part of Country B where 30% of its oil production occurs. This war prevents oil from being produced from that region so Country B can only export the remaining 70% (of its production) of crude oil from the western part of their country.
*At '''Point A''' the market is in [[equilibrium]], the supply matches the demand and the price '''P1''' and quantity '''Q1''' reflect this equilibrium.
*The decrease in exports from '''Country A''' to '''Country B''' means that the quantity supplied falls from '''Q1''' to '''Q2'''. The '''red arrow''' denotes this decrease in the quantity supplied.
*The decrease in the quantity supplied means there is less crude oil than there is demand for. Because the demand remains high, the crude oil is comparatively scarce.
*The scarcity of crude oil in the market of Country A means that it is valued more by consumers and that they are willing to pay more to get it. Their willingness to pay the higher price is shown on the Y-axis by the increase from '''P1''' to '''P2'''. The '''green arrow''' denotes this increase in the price per unit of crude oil.
*'''Point B''' reflects the higher price and lower quantity resulting from this disruption in supply.

Assume the war ends relatively soon, Country B will be able to export oil from the eastern part of their country again. This will result in an increase in the supply to the market and a return to the equilibrium where supply meets demand.

==See Also==
*[[Demand]]
*[[Supply]]
*[[Market]]

==References==
{{reflist}}

Market force - Revision history

Jmdonev: 1 revision imported

energy>Jmdonev at 17:59, 25 June 2026

Jmdonev: 1 revision imported: From the summer

Jmdonev at 22:10, 25 August 2016